Tax avoidance
Tws has made a few snide comments about my profession, so it is only right to bring to his (and others) attention just how tax avoidance works. It is simple, the more money you have, the less tax you end up paying as a percentage.
Being super-rich and foreign is the best tax avoidance device there is.
If you can be classed as "non-domiciled", then you can reach an agreement to pay a lump sum in lieu of tax on all your world-wide income in the way that us mere mortals have to.
The Guardian has a very good article on it, but to put it into perspective, one only has to look at the affairs of Mohammed Al-Fayed. He, his two brothers and his son agreed to pay £150,000 in income tax each year for the four of them rather than have to bother to complete Income Tax Returns. Not bad for the owner of Harrods and Fulham FC. This equates to taxable income of under £350,000 between the four of them! And this is only scratching the surface of the problem.
But they are not the worst. News International made profits of £1,387,000,000 in ten years and paid no, NIL, zero, nada, UK Corporation Tax. Stop all the abuse of tax havens, holding companies and insist of a minimum percentage tax payment and us humble taxpayers could see cuts in the burden.
BTW, my clients would be most upset if I didn't try to minimise their tax bills, but I'm also more than happy to divulge the simple things people need to do.
Being super-rich and foreign is the best tax avoidance device there is.
If you can be classed as "non-domiciled", then you can reach an agreement to pay a lump sum in lieu of tax on all your world-wide income in the way that us mere mortals have to.
The Guardian has a very good article on it, but to put it into perspective, one only has to look at the affairs of Mohammed Al-Fayed. He, his two brothers and his son agreed to pay £150,000 in income tax each year for the four of them rather than have to bother to complete Income Tax Returns. Not bad for the owner of Harrods and Fulham FC. This equates to taxable income of under £350,000 between the four of them! And this is only scratching the surface of the problem.
But they are not the worst. News International made profits of £1,387,000,000 in ten years and paid no, NIL, zero, nada, UK Corporation Tax. Stop all the abuse of tax havens, holding companies and insist of a minimum percentage tax payment and us humble taxpayers could see cuts in the burden.
BTW, my clients would be most upset if I didn't try to minimise their tax bills, but I'm also more than happy to divulge the simple things people need to do.
5 comments:
I recall Rees-Mogg's book 'The Sovereign Individual' some years back made the assertion that one could negotiate an 'individual tax treaty' with Switzerland; you'd agree to pay X thousand Swiss francs per year, whether your income was positive, negative or flat, and in return Switzerland became your 'tax home'. True?
If this is actually true, it sounds like a nice deal for someone wealthy enough to commit to paying a flat amount each year for X years--not that I'm likely ever to be able to indulge in such gambits.
Eric
This is exactly how it works in the UK, if you are wealthy enough. It means that some of the multi-billionaires enjoy tax-free income from many international sources, in exchange for a nominal payment.
Contrast and compare with "Benefit cheats".
Snide = sneering, slyly derogatory, or mean, underhand.
What I commented was the truth, or do you disagree? I'm not going to read your blog all over again, I do not like those who avoid paying their fare share of taxation. They are stealing from the poor, the old, the sick and the children as their tax monies would go towards hospitals, schools, the state pension, and other worthy causes. And you said that I was being SNIDE, what about the underhand way the rich avoid taxation?????
Tws - I read it as having a dig at my business, if that was not what you meant....
I know where there are loopholes which can save some taxpayers some money. That pales into insignificance compared to the really big players and the giant loopholes that the Chancellor leaves. I'll not take responsibility for that!
If I get a few quid back for local businesses or private individuals then I'm doing my job. Gordon has just closed many of the loopholes he created a few years back, so my job will become a bit harder next year.
Do I really have to put lol at the end of all my comments? And will the local NHS have enough money in the kitty to remove my tongue from my cheek once more? Cheery Tws....
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