Tax Avoidance

[squidge]

Tax Avoidance has been discussed here regularly and today there is an article in the Guardian http://apps.facebook.com/theguardian/commentisfree/2012/oct/30/roll-call-corporate-rogues-tax which says that the amount of tax being "avoided" is estimated to be £120 billion a YEAR. This surely is immoral and the avoidance of tax by corporations is a serious drain on the economy of the country. It was widely reported last week that Starbucks has avoided paying any corporation tax for the last three years - surely that cannot be condoned. According to this article "The Tory MP and tax lawyer Charlie Elphicke estimates 19 US-owned multinationals are paying an effective tax rate of 3% on British profits, instead of the standard rate of 26%."

Now when the government are targeting the weak and the vulnerable on an almost weekly basis then it is surely their responsibility to close these legal loopholes and ensure that they are working with other countries to minimise the ability of huge corporations to avoid their tax responsibilities. There seems to be lots of talk about moral repugnance but little or no effort. This film was shown at the Scottish Lib-Dem conference http://thehardesthit.wordpress.com/2012/10/27/the-hardest-hit-our-rights-our-independence-our-lives-video-released/ the transcript is here http://thehardesthit.files.wordpress.com/2012/10/hardest-hit-full-film-transcript.pdf Although the LibDems recently trumpeted their support for The plan to refuse an increase in benefit to people who have more than 2 children http://www.scotsman.com/news/lib-dems-will-accept-cap-on-benefits-in-return-for-tax-rises-on-rich-1-2601459 . I would hope that when people watch or read this they will want this government to act to stop this appalling behaviour by massively wealthy corporations.
Or do we not care.

[Alrock]

I'm afraid to say that the Government doesn't care about the poor, as far as they are concerned the poor can only blame themselves for not "getting on their bikes" to make themselves rich, ignoring the fact that there is only a finite amount of money available in the economy so not everybody can be rich.

[Flynn]

It is sickening the Westminster gov turns a blind eye to such an astronomical amount of tax avoidance while at the same time pointing the finger for all the nation's ills at the unemployed, the sick, the disabled, the elderly. I agree benefit fraud is a problem, but at an estimated £1 billion a year benefit fraud pales into insignificance when we look at tax avoidance.
In my view tax avoidance is no different to benefit fraud. Both rip off the ordinary taxpayer. But don't expect the Westminster gov of inherited multi-millionaires to do anything about it.

[mi16]

I don't think starbucks are operating illegally. In order to trade in the UK as Starbucks they have to pay an overseas company a massive amount of money for the rights to the Starbucks name.Whilst being immoral it is not illegal. You call it tax avoidance, no doubt they call it tax efficiency.And it is tremendous business sense if totally legit.

[ducati]

Anyone that contributes to a pension, or has an insurance based savings plan or an interest only mortgage is avoiding tax.

So what?

[sids]

Rubbish thread. Thought I might pick up some tips on tax avoidance.

[ducati]

Rubbish thread. Thought I might pick up some tips on tax avoidance.

Hey did you read my post? It is not the preserve of the rich you know ;).

[mi16]

Anyone that contributes to a pension, or has an insurance based savings plan or an interest only mortgage is avoiding tax.

So what?

That is surely tax efficiency not avoidance.
Also anyone who buys everything second hand is very tax efficient.