Private Equity

As I have previously mentioned, the real 'crime' here is the ability to turn income into capital and hence pay 10% tax rather than 40%.

A very clear and lucid explanation by the BBC on the state of affairs at the AA shows the scale of the problem; one created by a Mr G Brown, formerly of the Treasury.

The AA makes a profit of £252m last year and pays £223m in interest which is tax deductible. This interest goes offshore - to the investors? - where it is not taxed, and meantime the shares in the AA and Saga have generated a gain of £2,500,000,000 for the investors. Tax Free.

That's a tax loss of between £800,000,000 and £1,000,000,000 on those deals alone, all because Gordon Brown didn't think through the changes.

With Benefit Fraud running at £1.5bn it kind of puts it in persepective, and you have to wonder why all the resources are being pumped into fiding the little guys...
I look forward to similar campaigns to target the fat-cats.