Rich Tax Dodgers Hiding Billions in Foreign Tax Havens
RICH TAX DODGERS HIDING BILLIONS IN FOREIGN TAX HAVENS – According to HM Inland Revenue there are literally hundreds of super-wealthy Britons hiding billions of pounds in offshore accounts in order to avoid taxation.
A number of international ‘spy’ agencies have uncovered huge amounts of data that lists the assets of the super-rich and how they, and their financial advisors, have managed to circumnavigate the tax system in order to avoid paying their fair share of tax to the British Government.
It is no secret that a number of ‘tax havens’ exist around the world, including Singapore, the Cayman Islands, the Seychelles and even the British Virgin Islands.
The issue of ‘tax avoidance’ is a subject that continues to raise its ugly head and yet the UK, like other Western countries has a Government so incompetent that they have to draft in outside experts to advise and create tax laws. Now you might be thinking this is nothing like being incompetent as it should be the experts who advise the Government.
Yes I will submit that experts are what is needed however these experts should be employed by Government and not from outside firms, such as KPMG, who not only help create the legislation and rules for taxation but then use this knowledge to help their clients to continue in the avoidance of paying tax.
It’s akin to letting the fox guard the hen house and yet tax is such a complex issue that Government Ministers are often woefully under qualified to determine if the advice given is in fact the right advice.
With this investigation more HM Revenue & Customs have, according to sources, identified and sent warning letters to over 100 individuals. It is hoped that this investigation will now force high net worth individuals to pay their due taxes; which will also involved some hefty fines.
“The message is simple: if you evade tax we’re coming after you. This data is another weapon in HMRC’s arsenal.” George Osborne, Chancellor of the Exchequer
This all may seem like a wise and tough stance to take and most would agree that everyone should pay their fair share in tax, however yet again the Government fails as it openly admits that it is not exactly sure what sums are at stake; but went on the cover these tracks by announcing that some £3 billion could be raised from those who hid money in Liechtenstein.
As George Osborne gave his statement that ‘he was shocked by the extent to which the wealthy were exploiting tax loopholes’ this left me more than a little stunned that he obviously wasn’t aware of the scope of the problem. As keeper of the UK’s financial budgets you might have thought that George Osborne would have a finger on the pulse… apparently not.
Cast your mind back to last year’s debacle over Jimmy Carr, a well know comedian and TV personality, where he, and thousands like him, used a number of tax loopholes which resulted in the payment of less than 1% tax.
I certainly remember at the time how the British public was outraged at Jimmy Carr’s actions in avoiding tax payments and yet the stark realization was that Jimmy Carr, along with all the others was not at fault; but that’s not how the Government wanted to paint it. The Government set into motion a witch-hunt and vilified people like Jimmy Carr condemning him as a ‘Tax Dodger’ and little more than a thief in the night.
The truth is that the blame lay squarely, for anyone with their eyes open, on the Government for failing to provide the public with an adequate service and for creating tax laws with so many loopholes it made the legislation look like Aunt Matilda’s cake doily.
In my view Jimmy Carr made a fatal error; he apologized to the public saying it was an ‘error of judgment’. What he should have said was; ‘when you have morons being duped by outside tax experts who are gaming these system on behalf of their clients, what do you expect.’
A well oiled machine will run smoothly with all parts working as they should in order to produce an end product. Unfortunately when it comes to Government, its tax system and the creation of tax laws this is akin to a machine being held together with sticky tape and half the guts missing.
I am sure that there are many people who feel the rich have too much and that they should be heavily taxed, unfortunately taxing the rich in such as way, as I have pointed out in a number of articles, is complete and utter folly.
Rich people make money through a series of wise investments; whether in business or through other types of investment. In turn these people create employment where taxes can be paid; in essence it is the rich who make wheels of commerce and industry turn, not a government.
One of the principle reasons the rich avoid paying tax is because they know that their hard earned cash will simply be wasted by those in power who simply don’t have a clue how to run an economy for the greater good of society.
I honestly do not think anyone would mind paying tax into a system that benefits society but when the money raised is squandered on Foreign Aid and the propping up of other ineffectual EU member Governments is it little wonder why these people do not want to support such a system?