Cyclone Posted June 22, 2012 Share Posted June 22, 2012 clearly I know nothing about tax, but couldn't we tax all money earned in britain using the same rules? so no matter where it ends up it was taxed at a british rate? That's not really fair for a foreign national who is just working here for a short while... I worked in Germany for a while but paid UK income tax on my income. Link to comment Share on other sites More sharing options...
Cyclone Posted June 22, 2012 Share Posted June 22, 2012 It's only legal because there is no law preventing it. That's what generally happens with avoidance schemes, developments in markets and changes in taxpayer behaviour constantly change the nature of tax risk and in turn what might be regarded as avoidance. When HMRC or the Government decide that such activities are posing a risk they will either challenge them under existing rules, or, if there are no existing rules, they will bring in new laws. There is currently no specific law against drug driving. Does that make it legal and above board? In the case of drug driving the government have identified a loophole and have sought to end it by announcing a law change in the Queen's speech. According to you, just because there already isn't a specific law then it's OK to do it. I drive whilst on paracetamol, are you saying that's not above board? My only complaint with HMRC changing is the law, is when they also decide that it applies retroactively, it shouldn't be possible to do that as no one has the chance to avoid breaking the law if you've criminalised something they did in the past. Link to comment Share on other sites More sharing options...
llamatron Posted June 22, 2012 Share Posted June 22, 2012 That's not really fair for a foreign national who is just working here for a short while... I worked in Germany for a while but paid UK income tax on my income. but if you are earning money from germany is it not fairer (or at least easier) to pay them tax at their rate on those earnings? You will use their services while you are there! Link to comment Share on other sites More sharing options...
Jeffrey Shaw Posted June 22, 2012 Share Posted June 22, 2012 It's only legal because there is no law preventing it. That's what generally happens with avoidance schemes, developments in markets and changes in taxpayer behaviour constantly change the nature of tax risk and in turn what might be regarded as avoidance. When HMRC or the Government decide that such activities are posing a risk they will either challenge them under existing rules, or, if there are no existing rules, they will bring in new laws. Their next threat is called GAAR (General Anti-Abuse Rule) and a forthcoming Finance Bill is intended to include it as a catch-all aimed at almost any tax avoidance; see http://www.hm-treasury.gov.uk/tax_avoidance_gaar.htm. Link to comment Share on other sites More sharing options...
Cyclone Posted June 22, 2012 Share Posted June 22, 2012 but if you are earning money from germany is it not fairer (or at least easier) to pay them tax at their rate on those earnings? You will use their services while you are there! They have reciprocal arrangements with the UK of course for using services. And I will spend (the majority) of the income earned in the UK. It's certainly not easier to pay tax wherever you earn it, can you imagine needing to file tax returns in multiple countries, all with different laws and allowances and rates. Link to comment Share on other sites More sharing options...
llamatron Posted June 22, 2012 Share Posted June 22, 2012 They have reciprocal arrangements with the UK of course for using services. And I will spend (the majority) of the income earned in the UK. It's certainly not easier to pay tax wherever you earn it, can you imagine needing to file tax returns in multiple countries, all with different laws and allowances and rates. but they could tax at the source couldn't they? so everything would be simplified-wouldn't it? The main problem seems to be that its insanely complicated. If it was simple it would be harder to cheat-I think! Link to comment Share on other sites More sharing options...
SterlingPoun Posted June 22, 2012 Share Posted June 22, 2012 I admire the fact that he has decided to change his tax avoidance (especially since he doesn't legally have to do it), but I can't help but think that this is just a way for him to look good whereas if he hadn't have been publicly humiliated by his actions he'd have continued it. Link to comment Share on other sites More sharing options...
Jeffrey Shaw Posted June 22, 2012 Share Posted June 22, 2012 I admire the fact that he has decided to change his tax avoidance (especially since he doesn't legally have to do it), but I can't help but think that this is just a way for him to look good whereas if he hadn't have been publicly humiliated by his actions he'd have continued it. And that's the point. Can one justify actions with which one feels satisfied in private if one's embarrassed by them if and when they become public? Better: let your "inside" be as irreproachable as your "outside". Link to comment Share on other sites More sharing options...
chem1st Posted June 22, 2012 Share Posted June 22, 2012 Apart from the fact that even your own dreamed up figures don't add up, I didn't know that people earning 1p paid any tax at all. Perhaps in your imaginary world your figures have any meaning. On planet earth they are a load of meaningless twaddle. It was an example, to show the idiocy of the previous argument. Link to comment Share on other sites More sharing options...
Lucifer Posted June 22, 2012 Share Posted June 22, 2012 The PM has called Carr's tax arrangements "not morally right". Carr meanwhile had to defend himself against a heckler who shouted "You don't pay tax" Other celebs accused of aggressive tax avoidance include members of Take That, including the "saint who walks amongst us" Gary Barlow. I wonder if Carr will continue to pretend to be edgy and right on and sticking it to the bankers? Lets be honest, we all would like to find a means of paying less tax if we could. Link to comment Share on other sites More sharing options...
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