That slipped through

Manifesto promise

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Reading through last week's Taxation, and in particular "The Manifesto Challenge", and have just learned that the Conservative manifesto includes a commitment to not differentiate between tax avoidance and tax evasion. Now, I can't see evasion being de-criminilised, and so it must make avoidance a criminal offence, too.

Now, since day to day tax planning can, if the right spin is put on it, be considered to be avoidance, and in fact some perfectly legitimate tax avoidance schemes have been defeated only by the introduction of retrospective legislation, I find this a highly questionable pledge, and unsurprisingly, not well publicised.

Replies (13)

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Stepurhan
By stepurhan
07th Jun 2017 11:39

Did the article say where in the manifesto that commitment was made? It would be good to look at it in the original document to see exactly what they have said.

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paddle steamer
By DJKL
07th Jun 2017 11:39

Interesting- I must go and have a little look at the manifesto in more detail.

Well, as MTD means all our clients will become photographers of finance on a DIY basis and now all planning becomes a criminal offence,what is left for us to do? Are accountants going like the Dodo?

Looks like my final years may be wearing disguises and escaping the closing net of the law as they seek me out for suggesting to a client that the new bit of plant was acquired and brought into use before the year end.

Presume those accountants convicted will have an 8060 brand applied to their forehead, the Romans had I think Fugit for escaped slaves (Ecce Romani books at school where I singularly failed to learn Latin)

Actually the Roman word sounds just how I feel.

(Vote Conservative- the party that has decided that it will encourage large business entities to trade in the UK by strangling smaller competitors with compliance red tape)

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Replying to DJKL:
Tornado
By Tornado
07th Jun 2017 12:02

It has always bemused me that newspapers and other sources are full of financial advice such as "buy these shares now for a good return" or "everyone should invest in these unit trusts". I am not authorised to give financial advice but if I made the same sort of statements to my clients I would be in deep trouble. I guess the difference is that the newspapers are not specifically advising individuals even though it will be an individual reading that paper.

The same goes for newspaper tax advice. "Save tax by doing this" or perhaps "Stop the taxman from taking your money by doing this".

MTD by do-it-yourselfers will lead to many people taking unregulated advice with the obvious results. I also wonder if MTD do-it-youselfers will also have to register for Anti Money Laundering and Data Protection!

MTD is such as absurd idea, or perhaps fairer to say that the principal has some merit but the implementation is sheer folly and fantasy.

The Labour Party is the only Party to recognise that MTD may have some adverse impact on all businesses but their suggestion of "no quarterly returns" demonstrates that they really do not have a full understanding of the situation and that in the end there may be no significant changes to the MTD proposals by them.

I have no idea what the result of this election will be but I know that there are many voters who will cast their votes without any noise and fuss and it will be the votes of this silent majority that actually matter.

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By SteveHa
07th Jun 2017 11:50

Unfortunately it doesn't give chapter and verse, and whilst Taxation isn't typically a headline grabbing publication, I suppose it's not beyond the realms of possibility that it's taken out of context, although it's certainly plausible based on the past couple of years.

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By Duggimon
07th Jun 2017 12:00

They make no such statement, the only bit that refers to it is this:

"Stopping tax evasion
We have taken vigorous action against tax avoidance and evasion, closing the tax gap –
the difference between the amount of tax due and the amount collected – to one of the
lowest in the world."

This seems to imply they may see them as the same thing but I think it's more a language issue than a promise to criminalise tax planning.

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Replying to Duggimon:
By Duggimon
07th Jun 2017 12:01

The manifesto is here: https://s3.eu-west-2.amazonaws.com/manifesto2017/Manifesto2017.pdf

and the bit in question is on page 16.

There are many good reasons to not vote for the Tories but this isn't one.

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Replying to Duggimon:
By SteveHa
07th Jun 2017 12:13

I suspect that they have latched on to the inclusion of tax avoidance in a section headed "Stopping Tax Evasion", coupled with tougher regulation on tax advisory firms to reach the conclusion that they have reached.

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Replying to Duggimon:
Stepurhan
By stepurhan
07th Jun 2017 12:15

Thanks for the pointer.

As you say, it's more of the bullish avoidance/evasion rhetoric rather than a promise to legally conflate the two. It still might cause problems down the line with them having this attitude, but nothing we haven't heard before for now.

I have 99 reasons to not vote for the Tories but.....

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avatar
By justsotax
07th Jun 2017 12:11

to be fair to the politicians who have spoken about evasion and avoidance, they don't appear to have a clue as to the difference between the two - although that could be applied to most things they preach about.

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Replying to justsotax:
paddle steamer
By DJKL
07th Jun 2017 14:31

Aha, the difference currently is legal construction, change the legal construction and there is no difference.

HMRC seems to be getting given a bigger shovel for my clients' stores.

The Labour manifesto more focuses on reporting of geographic profits and turnover, in line with relatively recent developments within the OECD coupled with certain EU initiatives. Whilst they have been at this for some time, and progress has been slow, at least some steps have been tried.

Of course our leaving the EU and some of the slightly more aggressive rhetoric does place us slightly outside the coalition of the willing.

If it is accepted that a Globalised world is the new norm, and will be for some considerable time, it is clear that cross border taxation will continue to grow in significance, and likely in complexity. Given this a move to have a much simpler , distinct tax code for smaller entities to me looks more pressing, though I doubt Conservative statements re tax simplification will be much more than continued bodging - am not expecting thought outside the box from any of them.

What about creating a junior minister for the SME sector , that might show some willing.

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Out of my mind
By runningmate
07th Jun 2017 14:07

Having seen the disgusting propaganda from the Daily Mail today I am forced to the conclusion that the UK is under greater threat from terrorists on 'Fleet Street' than terrorists on London Bridge.
RM

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RLI
By lionofludesch
07th Jun 2017 14:42

Surely that happens quite a lot. Taxpayer finds loophole, HMRC lose case, HMRC sulk and take their bat home, Govt brings in legislation to close loophole.

Valid claims are already being refused because it's not the intention of Parliament. There's been discussion of a few of these on this very forum. But no one will take them forward because there's not enough at stake.

Theresa Maybe (c DJKL) is now being touted at 20/1 to be next PM at Corals. These politicians never learn, do they?

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Replying to lionofludesch:
paddle steamer
By DJKL
07th Jun 2017 16:14

That is what she is known as in Sweden, per my neighbour there, Maybe.

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