One interesting story this week one couldn’t ignore was Jimmy Carr being caught out fiddling with his taxes. This brought about widespread condemnation, notably from the PM who called it morally unacceptable
If there’s one positive of this whole escapade it is to highlight the techniques, both legal and illegal, used by many of the country’s wealthy to outwit the tax man. They highlight why we need to crack down on these tax dodgers heavily. I find it deeply ironic that they’ll go to elaborate lengths to catch benefit fraudsters (as in hiring private detectives), even if it turns out its only someone claim a couple more quid a week than they’re entitled too. But they’ll then argue that its too costly and difficult to go after ultra rich tax dodgers, who often owe millions in back taxes, as highlighted by the grassroots movement UK Uncut.
Also more efforts could be made to close the loopholes used by companies such as those who Jimmy Carr was working. Indeed its worth remembering Jimm Carr was not alone here, a top tory donor has also been linked to a similar scheme, Gary Barlow has been similarly caught out. Some form of repatriation charge of say 25% on any financial transaction too or received from a known tax haven, or various forms of economic sanctions would wipe out many of these schemes.
And of course I find it deeply ironic, David Cameron lecturing us on the issue of tax avoidance. His family made quite bit of its cash in tax havens. And as I recall Lord Ashcroft and Phil Greed Green owner of (Top Dodgers) are still around the cabinet table. Now, okay Jimmy Carr should have been called out (and speaking of which what I want to know is when is he planning to pay all that tax back and will it be cash or cheque? |-|), but his tax avoidance pales in comparison to many Tory supporters. Its the equivalent of a mafia boss complaining to the cops because some yob pinched his handkerchief.
Ultimately the only solution to aggressive tax avoidance is aggressive tax collection from the rich. This obviously means higher rates of tax, or Patriot Tax as I call it
(stands for Providing Appropriate Tax Requirements In Our Time), But more important than that, making sure they pay what’s due under the current regime.