MPs say tax avoidance regime is working well

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Tax avoidance is legitimate in itself but must not be allowed to endanger the public finances, says a new Treasury Committee report.

The tax avoidance disclosure regime introduced in the 2004 Budget is working well, the committee said in yesterday's report on the December 2004 pre-budget report.

The intention of the regime was that tax authorities receiving early notice of schemes could form a relatively quick view as to how to respond, the report said.

It added: "The response could be to note the development but to take no action, or to announce that action will be taken to legislate against the scheme; if it was judged appropriate, it might be indicated that the proposed legislation would take effect from the date of the announcement. In practice, a number of such announcements were made wi...

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01st Feb 2005 21:05

Election Jitters
Sounds to me like Gordon has been told to dampen things down a little prior to the election.
Don't be alarmed if bankruptcies keep rising and compliance gets worse its all part of the "pay the right, not legal tax" brigade.

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28th Jan 2005 13:30

Tax avoidance is any adverse variance in the Treasury's estimates. "Inappropriate" is the same.

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28th Jan 2005 12:43

It is... is reassuring that the Treasury Committee has endorsed the principle that tax avoidance is legitimate, even if they have tried to fudge the issue by restricting legitimacy to exclude 'inappropriate' avoidance.

But that restriction is meaningless without a definition of 'inappropriate', which they have conspicuously failed to offer.

At least they did not resort to traditional cant and humbug about the supposed immorality of tax avoidance.

Indeed, it difficult to see how anyone could do nowadays when, under New Labour, taxation has become a massive and massively corrupt political slush fund with which Gordon Brown buys the votes of the 500,000+ extra civil servants he has hired since 1997.

The truth is that, because of the corruption and waste of New Labour, the moral argument against tax avoidance collapses completely.

In fact it becomes inverted. The ethical argument now supports tax avoidance because avoidance reduces the amount of tax available to New Labour to apply in corrupt and wasteful practices.

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28th Jan 2005 14:30

offshore ?
If the company thinking up the scheme is offshore, the person using the scheme has to report it...these rules aren't completely stupid.

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