Rich Gits Benefit at Whose Expense

[nichola]

A saving of 1 billion to the Govt that will cost the UK taxpayer as much as 40 Billion... no need for the richest to take to the streets and protest. This government is looking after them!

I wonder how many students 40 Billion could put through University

'Wealthy Britons could dodge £40bn in tax payments after the UK agreed ahead of negotiations on a tax deal with Switzerland that the country could maintain its traditional banking secrecy.

Thousands of higher rate taxpayers, who pay 50% tax on their income in the UK, will be allowed to keep their secret accounts in Zurich and Geneva and pay a low tax rate after the Treasury failed to secure agreement on sharing bank details'.

Proposals to make the deal retrospective were also rejected by the Swiss authorities, saving further large sums for wealthy UK residents.

Read the rest here...
http://www.guardian.co.uk/business/2010/oct/26/tax-avoidance-switzerland-agreement

[Eric]

Erdogan's 8 bank accounts there will be safe then
Glad mine will remain secret[^]

[barry44544]

Mark and Carole's mums money will be safe....
(Children of Thatcher)

[Firo]

What I find interesting in this sort of subject is.... If anyone of us were in their position (ie:super rich) would we willingly give ALL our due taxes or would we use legal loopholes to save as much as possible?
From my point of view ....I would work the system to keep as much of my money as I could. ...
I know plenty of average earning Brits who will try and avoid paying their dues and lets not start on all those benefit claimants that have cash jobs on the side (tax avoiders), no lets just have a go at the super rich.If it wasn't for these super rich men and woman who are heads of multi million pound companies employing millions,unemployment would be a lot higher.
I for one would love to know where Tony Blair's got his millions hidden from the Inland Revenue.
Numerous governments have tried to close these tax havens and sometimes succeeded and other times failed but at least they tried.
At the end of the day they are not breaking any laws they are just working the system, which happens from the poorest to the richest.

[c1]

Firo right on the button. What ever happened to the cash tax payer via Brown's Darling lent or gave to Icelandic Banks did we the tax payer ever see that back. Mark Thatcher made his money out of the likes of EDS selling via contacts he made while mum was in power to sell non working computer systems to government depts, I see that in the same light as Taffy kinnock getting his wife top job on euro gravy train and son top job with british council. Very few in politics are trust worthy many are lawers ie proffesional liers.

[scot]

Yes Firo and c1 i agree.

Bruce

[fletch]

Most workers in the UK would love to dodge paying tax, I have friends that are contiuously asking my advice on getting around IR35 etc.

HMRC have just made their move on tax avoidance by changing legislation on the loan aspects of EBT's but already just 72 hours after they announce it, there has been a loop hole found and solution providers are re-jigging their mechanisms.

Whatever HMRC do they will always leave gaps because they are not as efficient as they have you believe. Yes the rich do want to get away with paying taxes but the same could be said of most working individuals, the difference being that higher earners can afford to pay someone alot of money to act for them.

[Colwyn]

Nichola, you seem to be doubting that we are all in this financial crisis together - rich and poor alike. But surely we are, that nice Mr Cameron said so. I expect the super-rich are really doing us all a favour by hiding their money in Swiss banks. Anyway its only £40 billion in unpaid taxes it is costing us; hardly anything at all really.

[kenkay]

If the UK government capped the tax rate at 40% there wouldn't be the need for secret accounts and the tax accrued would be more.

[fletch]

KK, I don't agree with the 40% cap as high earners have been tempted to use tax solution mechanisms for years just to save paying such a high rate.

eg. I know that there are thousands of workers earning £50k plus that pay less tax than someone on £13k per annum. They feel that the saving is worth the risk of HMRC catching up with their chosen provider and investigating them and then winning in the courts.

I think that the UK government should have an across the board 20% taxation rate, this will take away the temptation of taking risk to pay less.

HMRC have now completed the much expected 3 prong attack on the higher earners, BN66, IR35 and now EBT's. Their timing was perfect for many reasons in attacking EBT's but as I said "It was expected".