George Osborne finally gets tough on tax avoidance!

[ricgem2002]

dont people realise that the rich don't like handing over money into something they will never get anything out of . mps on the other hand like to take everything they can out of the pot (wages/pensions/expenses/etc) payed for by millions of hard working taxpayers

[RonJeremy]

dont people realise that the rich don't like handing over money into something they will never get anything out of . mps on the other hand like to take everything they can out of the pot (wages/pensions/expenses/etc) payed for by millions of hard working taxpayers

 

It's good to know that Bonzo pays extra money to support these MPs that some people despise.

[Cyclone]

I could choose to exploit loopholes. But I don't. It's about time the government actually went about closing all loopholes and forced a fair system on these multinationals.

 

So you don't use ISAs or invest in a pension then?

[ricgem2002]

So you don't use ISAs or invest in a pension then?

not that old chestnut again cyclone:huh: many working people who are barely earning a living don't have spare cash to invest in such things.

[RonJeremy]

not that old chestnut again cyclone:huh: many working people who are barely earning a living don't have spare cash to invest in such things.

 

But Bonzo does. He has spare cash to give away to George Osborne to spend as he wishes.

[Bob Arctor]

The issue is whether George Osborne is serious about closing loopholes that allow corporations to structure their accounts in such a way that means they don't pay the tax that they are supposed to and that companies that do not have overseas operations do pay. To which the answer is 'clearly not'. It's not relevant what one forum member pays/doesn't pay.

 

Companies that declare all their profits in Luxembourg etc. instead of the countries in which the profits are actually made are ripping us off. They benefit from British state education, state health services and state subsidised transport systems without contributing to them. That's "something for nothing" which as well as being economically unsustainable is supposed to be something that Tories despise.

[Cyclone]

not that old chestnut again cyclone:huh: many working people who are barely earning a living don't have spare cash to invest in such things.

 

Not really the point is it.

 

If you have the option of saving in an ISA or not in an ISA, why would you choose the one where you have to pay tax on the interest?

If you invest in a pension at all, you avoid paying tax on that investment.

 

That's how tax works, we all pay the minimum, also known as what is required. Nobody pays a bit more because they think the government could really use it.

[Bob Arctor]

Not really the point is it.

 

If you have the option of saving in an ISA or not in an ISA, why would you choose the one where you have to pay tax on the interest?

If you invest in a pension at all, you avoid paying tax on that investment.

 

That's how tax works, we all pay the minimum, also known as what is required. Nobody pays a bit more because they think the government could really use it.

 

I think your post misses the point also, Cyclone. No-one is saying that corporations should go out of their way to pay more tax than they are supposed to; they just want them to stop going very far out of their way to pay less tax than they are supposed to. Let's remember what the issue is here: companies make hundreds of millions of pounds of profit in the UK. They then 'buy' services (marketing, branding etc.) from another part of the company based in Luxembourg or somewhere else with minimal corporation tax rates, at rates set by themselves. These magically have the outcome of all or nearly all the profits being declared in Luxembourg or wherever, and very little tax is paid. It's called 'transfer pricing'.

 

The equivalent for an ordinary PAYE employee would be something like as follows: they agree with their employer to claim that they are actually a contractor, not an employee, thereby dodging PAYE. They then set up another company registered in Jersey or the Cayman Islands, which they pay all of their earnings to for 'services rendered'. That money then gets paid into their spouse's account on a monthly basis - voila, tax-free income.

 

I'm sure we can all agree that's very, very different from putting some money in an ISA.

[carosio]

 

The equivalent for an ordinary PAYE employee would be something like as follows: they agree with their employer to claim that they are actually a contractor, not an employee, thereby dodging PAYE. They then set up another company registered in Jersey or the Cayman Islands, which they pay all of their earnings to for 'services rendered'. That money then gets paid into their spouse's account on a monthly basis - voila, tax-free income.

 

I'm sure we can all agree that's very, very different from putting some money in an ISA.

 

Yes it is very different, but if they become a (true) contractor they are then, presumably, self-employed, along with all the advantages and disadvantages that that entails. If they then set up a company in order to make tax-free payment arrangements they are simply taking advantage of the options open to them. Being an employee does not offer anything like the same scope, but those are the rules.

[MLAR]

Yes it is very different, but if they become a (true) contractor they are then, presumably, self-employed, along with all the advantages and disadvantages that that entails. If they then set up a company in order to make tax-free payment arrangements they are simply taking advantage of the options open to them. Being an employee does not offer anything like the same scope, but those are the rules.

 

But, being self-employed doesn't give you the right to rip off your fellow citizens.

 

Bleat all you like about "taking advantage of the options open to them". The true fact is that they are stealing from every single, honest taxpayer.

 

Tax evaders should have their assets seized and be thrown in jail for a considerable period of time, in my opinion. Shoplifters and burglars receive harsh sentences, tax evaders should do too.