Tax avoidance

Tax avoidance is legal, it's tax evasion that's illegal

tax avoidance = arranging your finances so as to pay the least tax as possible LEGALLY.

We all do that....its only the level and the methods used, that really counts

georgeingozo wrote:

Tax avoidance is legal, it's tax evasion that's illegal

Yes, I know the difference; I was just being careful with my title.
Makes me laugh a bit about avoidance, everyone whinges about it, including Government, yet it is Government that make the rules that allow for avoidance.

Using an ISA is tax avoidance. A landlord not declaring rent is evasion

I don't think people do complain about avoidance in general, or if they do they are being hypocritical as everyone does it - ISAs, tax free allowances, etc.

georgeingozo wrote:

I don't think people do complain about avoidance in general, or if they do they are being hypocritical as everyone does it - ISAs, tax free allowances, etc.

Should hear the stink that's being raised in UK at the moment.

Also I like the way it's described in this article as 'underground activity'. That covers a multitude of practises.

I think there is a big difference
between

a) what the everyday person does in terms of avoidance - making full use of allowances by putting savings in your wifes name or vice versa, isa allowances etc

and

b) what the big names such as Jimmy Carr and the multitude of footballers and big big stars do - as per the recent news stories in the Uk

I know they say its not illegal, or is it....i dont know - but if its a loophole that is/has being taken advantage of, then it should be closed now that it is known.....

The EU has written to Malta and other countries telling them to do something about this. I can understand that as why give out EU money when some countries have an economy that leaks like a colander?
As I wrote, it amazes me that Governments that complain of the levels of avoidance made the loop holes and deals that are taken advantage of in the first place!
Mind you, sometimes they do so to attract businesses to their countries for the employment and investment opportunities.
I guess it's a delicate 'juggling' act that sometimes 'backfires'.

toonarmy9752 wrote:

I think there is a big difference
between

a) what the everyday person does in terms of avoidance - making full use of allowances by putting savings in your wifes name or vice versa, isa allowances etc

and

b) what the big names such as Jimmy Carr and the multitude of footballers and big big stars do - as per the recent news stories in the Uk

I know they say its not illegal, or is it....i dont know - but if its a loophole that is/has being taken advantage of, then it should be closed now that it is known.....

I agree - its the difference between an intended and non-intended loopholes/schemes. Jimmy Carr - what he did was legal at the time, but HMRC can make it illegal retrospectively by declaring the scheme was outside the intent of the law.

gig wrote: I agree - its the difference between an intended and non-intended loopholes/schemes. Jimmy Carr - what he did was legal at the time, but HMRC can make it illegal retrospectively by declaring the scheme was outside the intent of the law.

And, as we know, the law is always open to interpretation!
The 'defaulters' in UK at the moment are Starbucks, Google and Amazon.

again redmik - its the biggies who are the main culprits and they're allowed to get away with it as a underhand deal beteeen the top managements of both the companies and HMRC..over a salmon and champers meal...

I got my account at the Bank of Valletta opened this week. "Ah. Not employed. (I'm a poker player) You'll fit in well here" said the advisor