Bernie Ecclestone Accused of £1 Billion Tax Avoidance Scheme
BERNIE ECCLESTONE ACCUSED OF £1 BILLION TAX AVOIDANCE SCHEME – It’s all over the papers; the Formula One mogul Bernie Ecclestone is accused to trying to avoid a £1 billion plus tax bill, but according to the Daily Mail, the Her Majesty’s Revenue & Customs (HMRC) scrapped an inquiry in return for Mr. Ecclestone agreeing to pay just £10 million.
The Daily Mail goes on to state that HMRC last night refused to discuss the matter, after it allegedly spent 9 years probing Mr. Ecclestones tax affair; it is further alleged that after failing to unravel the web of offshore entities and family trusts the HMRC quietly reached the £10 million agreement.
If you’re one of the millions of hard working taxpayer’s who are struggling to make ends meet due to the Government ongoing austerity measures you’ll probably be sitting there shaking your head and acknowledging what everyone else is thinking … there’s one rule for the rich and one rule for everyone else.
That I’m afraid is only true in part because it’s not so much as the HMRC doing a dirty deal under the table it simply comes down to the fact that the rich are far smarter than our employees; those being the people we employ at the HMRC and indeed across the public sector.
At meebal.com we’ve hit on this note before; that is why would any rich individual want to have over millions or even billions to an institution that is wholly unaccountable, inept and corrupt?
Please don’t try to convince yourself that the Government is capable of anything near competency for if it were Britain’s national debt wouldn’t be fast approaching £1.4 trillion; think about it… how many bankrupt billionaires do you see roaming about and yet despite the vast sums of money Government generates annually it still has to borrow huge sums to keep the whole incompetent and corrupt system operational.
I’m sure that’s plenty of people who think what Mr. Ecclestone has done, if these allegations are in fact true, is criminal; I can tell you that tax avoidance isn’t a criminal act and therefore he has broken no laws by avoiding to pay his taxes; it could however been viewed as immoral considering he could clearly afford to pay his fair share.
If you have to express your anger then it needs targeting in the right direction and in his case it’s the HMRC for look carefully at the second paragraph… the HMRC is ‘refusing’ to discuss the matter.
That’s right your employees are refusing to disclose what dirty dealing they have been up to; this merely cements the idea that Government, regardless of which department it happens to be, is wholly unaccountable to the public.
Wealthy individuals often view taxation as a complete and utter waste of money. Certainly they are aware that the ‘social systems’ need paying for but when these systems are operated in such a deplorable and wasteful manner it’s not surprising they’ll avoid paying as much tax as possible; the reality is that they are far more capable of generating wealth than any Government.
Last year the Chancellor George Osborne took on-board some advice; this was to reduce the top rate level of tax from £0.50 to £0.45.
At the time the public assumed this was yet another clandestine way to simply help the rich get richer but in fact it generated a further £9 billion in tax revenue which then allowed the Chancellor to increase the earnings threshold for low income families.
The economic ‘Laffers Curve’ dictates that if you lower taxes you can effectively increase tax revenue; this occurs because people, mainly the rich, feel it is fairer and therefore don’t take aggressive measures in avoid paying tax.
If you think this is somewhat of a rather naive view then watch the video below.
We live in a time were accountability appears to have taken a back seat; this in our view has transpired as this and previous Governments further attempt to cover up their own failings.
The HMRC, in our view, should have no right to ‘refuse’ its employee’s access to information that details why it failed to properly impose the correct level of taxation on Mr. Ecclestone, if in fact that is the case.
We’ve seen this before; in fact last year David Cameron had a private meeting with Eric Schmidt, the CEO of Google but refused to discuss Google’s ongoing tax avoidance scheme that is costing the Treasury hundreds of millions, if not billions, annually.
Note we said it was a ‘private meeting’. How many small businesses last year had a ‘private’ meeting with Mr. Cameron?
That would be none in our guess which further fuels speculation that these meetings are allowing large corporations almost a free run without consequences.
There can be no denying that Government has simply grown too big and in the process has given them the power to deny the voting public their democracy, which is their right to know what our employees are doing on our behalf.
I can’t remember the last time I read a complimentary comment regarding David Cameron or this Coalition Government and at meebal.com we suspect the Tories will fail to get re-elected in 2015.
Unfortunately it really doesn’t matter which flavour of politics you prefer because Government has become far too large and by voting out one set of liars, thieves and incompetent fools it’s almost inevitable you’ll simply vote in another.
It is for this very reason why more and more people are not considering abstention in the 2015 General Election for this could be the key to bringing down Government and then starting again with a system that is fully accountable to the public.