Cameron Calls to Allow HMRC to Raid Bank Accounts

by Editor | May 10, 2014 4:52 am

CAMERON CALLS TO ALLOW HMRC TO RAID BANK ACCOUNTS – Just weeks ago everyone in the Tory Party, including David Cameron, was applauding the Chancellor George Osborne over his tax cuts across the board.

It now appears that Mr. Cameron wants the HMRC to have the ability to raid the bank accounts of those who attempt to avoid paying tax; the issue here is that Mr. Cameron is warning of tax hikes if such legislation is not permitted.

Once again David Cameron is resorting to the ‘fear’ tactic; that is either give the HMRC the power to raid bank accounts without permission or face the very real prospect of seeing tax rates rise.

“If we don’t collect taxes properly and don’t make sure people pay their taxes properly we look at the problems of having to raise tax rates.

 

I don’t want to do that, so I support the changes the Chancellor set out in the Budget which is to really say that not paying your taxes is not acceptable.

 

It is very clear that they can only do this if there is a debt of over £1,000, they can only do it if there’s £5,000 or more in the account after this has been completed.

 

The principle is do we want to pursue every avenue of making people pay the taxes they are meant to pay before we put up taxes – because that’s the alternative – absolutely, yes we do.” David Cameron, Prime Minister

If you read carefully into what Mr. Cameron is saying, especially regarding the amounts, then it’s clear the target is primarily the wealthy and businesses.

From the outset this might not appear unreasonable, after all why shouldn’t everyone pay their fair share of tax.  Yes, in the minds of the general public this might not appear like a bad idea and effectively prevent those who attempt to avoid paying tax from doing so.

Unfortunately it’s not as simple as that for it’s almost certain that any such legislation will be abused by those in power and clearly underlines the incompetency of the HMRC and Government.

Those responsible for running the HMRC are a zealous bunch when it comes to targeting people who they feel have managed to circumvent tax legislation but clearly tax avoidance is perfectly legal.

In our view, if the HRMC and David Cameron’s Cabinet members weren’t so ineffective then Mr. Cameron would never have to talk of such a plan.  Tax avoidance is a direct result of Government incompetence and in the case of the HMRC it’s staggering for not one of them is able to produce legislation that would effectively close the loopholes.

Despite the thousands of people employed at the HMRC they still have to bring in an army of outside tax specialists year in, year out, in order to create legislation; these specialists include the likes of KPMG.

The consequences of such action is clear in that firms such as KPMG help create tax legislation and then in turn help their wealthy and corporate client circumnavigate it in order to avoid paying tax.

If Mr. Cameron creates such a law that gives the HMRC the power to raid bank accounts then it will only be effective in cases where tax evasion is prevalent and whilst there are many cases these pale into insignificance compared to the practices of tax avoidance.

You would think that if Mr. Cameron or his Cabinet members looked at this situation in a logical manner then common sense would tell you that tax legislation simply needs amending so that ‘avoidance’ can be significantly reduced; that of course would require common sense and a level of in-house expertise; something this Government severely lacks.

There’s another pressing issue here and that is of an exodus… that’s right if such a law was introduced it’s likely the wealthy and many corporations would pack their bags and leave.

In turn this would result in increased unemployment and significantly reduce the Government’s ability to raise taxes.

Look back to the 2014 Budget and carefully examine where the tax cuts were derived from; that’s right the reduction in top rate tax from the rich produced an extra £9 billion in tax revenue which then allowed the Chancellor to reduce the threshold of tax for lower income earners.

It is a myth that taxing the rich allows for a Government to generate greater levels of tax revenue; in fact the direct opposite applies and this has been proven time and time again.

If such a law was to be passed and an exodus occur then the only possible way for the Government to generate sufficient levels of tax revenue,in order to keep up with the interest payments on its national debt, would be to increase taxation across the board; effectively the rich would have left to sit on a beach whilst the Government financially rapes the citizen for all they are worth.

In an article this morning by the Daily Mail, it gives a Q&A on what intentions David Cameron has in regards to providing HMRC with such powers (see below) their article is also certainly worth reading.

HMRC Raiding Bank Accounts Q and A[1]

Source: Daily Mail

This current idea, or rather propaganda to vilify the rich, obviously hasn’t been given much thought but that’s little surprising considering it’s coming from a man who is wholly incapable of doing so.

You can read into this whatever you like but from our perspective what Mr. Cameron is attempting to do is to rally support from the lower income earners so that he can effectively claw votes from those who supposedly support the working classes, Labour.

Yes, Mr. Cameron is running scared due to the rise of UKIP and his only hope is to persuade lower income earners to support the Tories and by attacking the rich this is obviously being viewed as one way to swing the vote.

It is of course a political ploy, nothing more but one if implemented, just to secure public support, will undoubtedly throw the economy into turmoil and bring Britain ever closer to the abyss of bankruptcy.

Endnotes:
  1. [Image]: http://meebal.com/wp-content/uploads/2014/05/HMRC-Raiding-Bank-Accounts-Q-and-A.jpg

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