Nanny is working herself up into a frenzy over tax avoidance schemes. These are legitimate methods used by companies and individuals to avoid paying tax.
Nanny and her "friend" Gordon "Smiler" Brown (nicknamed "Potato Head" by his own staff) are being very clever in their campaign against tax avoidance. They are allowing the media to run with the idea that tax avoidance is only a rich man's tool, used by the unscrupulous to avoid paying what is in Nanny's view their moral obligation.
Indeed, Nanny has even persuaded her old chum Auntie to run a Money Programme documentary about it tonight. Doubtless we will witness some very fine schemes indeed including; offshore companies, paying people in bales of hay and artificial losses.
All of this goes on, that is true. However, what Nanny doesn't like to remind you is that tax avoidance is perfectly legal; it is tax evasion that is illegal.
Tax evasion is whereby an individual or company deliberately and knowingly makes a false tax declaration, with a view to defrauding the Inland Revenue, eg not declaring a source of income.
Tax avoidance is whereby the taxpayer uses the law to legitimately reduce their tax bill. This can include fancy schemes such as being paid in bales of hay, but also includes what every tax payer does (if they are aware of it) eg claim additional personal allowances or offset allowable costs against income.
Nanny, by allowing the media to portray tax avoidance as morally reprehensible is moving towards banning tax avoidance; ie those offsets and allowances that you and I currently take for granted will be disallowed.
Why?
Simple, she is running out of money and needs to find more ways to tax us.
The Nanny state is financially ruinous for us all.
One might suggest that were Smiler Brown to focus his efforts on streamlining the tax system, instead of making it more complicated, then people would devote less time and money to looking for ways to avoid his increasingly complex and incomprehensible rules.
However, Brown is an arrogant individual and will never admit to the fact that it is his complex and expensive rules that are creating ever more "ingenious" tax avoidance schemes.
The right to practice tax avoidance is as important to the tax payer, as is habeas corpus to every citizen of Britain. Unfortunately, Nanny has little respect for that either.
"Gordon is a prudent Chancellor", "Gordon has kept a steady hand on the ecomony.", "Gordon for next prime Minister". How many times have we heard this sort of crap uttered by the media and politicians.
ReplyDeleteIn fact, as a practicing accountant, I am now firmly convinced that, unless there is a radical change of policy and course, this country is heading towards bankruptcy, driven largely by Gordon's idiotic policies.
He has picked on the self-employed and small businesses - the wealth and job creators of this country, when all said and done - with a vengeance, as he knows they will generally comply with all the regulatory red-tape and pay their taxes (which is far more than many of his Nannied "poverty stricken" families will do).
Yesterday I heard of an instance whereby a family was receiving £700 per month in Tax Credits, and another instance whereby someone became deliberately pregnant not because she wanted another child, but because she wanted to increase her Tax Credits. Absolutely ridiculous, and Gordon, my old corker, your doing, sunshine!! Many people in employment don't get much more than this after having paid their taxes and increased National Insurance, particularly in pooper areas such as Cornwall.
So what sort of incentives do your policies offer for people to get off their backsides, work hard, get qualified and try to move up the pomotional ladder into higher paid jobs and so forth. None whatsoever.
No Gordon, my answer which will encourage many to find work is to cut out this benefit state completely. You might even save yourself considerable monies and not have to resort to breaching our legal right to keep our taxes as low as possible in the process.
Sorry, some may think Cornwall is "pooper", but I meant to spell "poorer"!!
ReplyDeleteA Freudian slip-of-the-keyboard, methinks.
ReplyDeleteYou seem to think that the money is somehow "yours".
ReplyDeleteComrade is a bourgeoise attitude; how can anyone have any money except through the goodness of the State?
The State provides for the citizen like the (liberated) peasant for "his" pig.
If the State asks for tax the correct response is: "how much?" not "how can I avoid it?"
Do not ask: "what can I do for myself?" rather ask: "what extra can I do for the State?"
From each according to his means to the State.
You have clearly not grasped the Gordon Brown version of tax simplification - allow me to quote next year's simplified tax return by way of explanation:
ReplyDelete1) How much did you earn last year?
2) Send it to us.