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PwC chairman: Tax advice has moral dimension

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7th Oct 2014
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Professional services firms have a role to play in helping companies think about what is “acceptable and appropriate” in managing their tax affairs, PwC’s global chairman has said.

Dennis Nally told the Financial Times that long-established tax laws were coming under review as countries “struggle with their revenue base”.

The FT reported: “When asked if tax advice has a moral dimension, Mr Nally said: ‘I think it does … It’s not only what companies could do but what should they do.’ Professional services firms have a role to play in helping companies think about ‘what’s acceptable and appropriate,’ he said.”

The report contrasted Nally’s remarks with EY’s UK and Ireland chairman Steve Varley’s response last week to George Osborne’s speech to the Conservative party conference.

Varley said EY would not change its advice to US technology groups accused of aggressive tax avoidance. He told The Times: “We’ll carry on as before … Parliament should legislate if they want a different outcome. I don’t think it’s up to us to get embroiled in politics.”

‘Paying for tomorrow’

PwC in the UK launched a competition for students today, in a “quest for fresh thinking and debate on UK tax reform” as part of its “Paying for tomorrow” campaign.

The firm is offering £20,000 for the best essay on how the tax system should change to improve job prospects and drive the UK economy.

Kevin Nicholson, the firm’s head of tax, said: “Tax impacts everyone, every day and in many ways but most people don’t get a chance to have a say on how taxes are raised. The Paying for Tomorrow campaign is about opening up the debate. We want to hear from students – tomorrow’s workforce who will be impacted hugely by tax policies put in place now. The substantial prize reflects the importance we place on students’ fresh thinking.

“It’s time for a strategic vision of how tax will be generated in years to come. As a large tax business, we recognise we have a responsibility to champion change.”

Related articles:

EY boss defies Osborne’s tax challenge

Apple and Ireland defend tax rulings

Osborne signals digital business tax crackdown

Replies (10)

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By Jekyll and Hyde
08th Oct 2014 07:34

moral dimension!
perhaps the first moral decision PWC should make is to reduce its profits per partner from a recent reporting of £772,000 per annum.

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Replying to Tax Dragon:
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By petestar1969
08th Oct 2014 15:19

Hmm

Jekyll and Hyde wrote:
perhaps the first moral decision PWC should make is to reduce its profits per partner from a recent reporting of £772,000 per annum.

 

Jealous much?

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Replying to Trannysister:
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By Jekyll and Hyde
09th Oct 2014 08:30

not one bit

petestar1969 wrote:

Jekyll and Hyde wrote:
perhaps the first moral decision PWC should make is to reduce its profits per partner from a recent reporting of £772,000 per annum.

 

Jealous much?

I have a far better work/life balance to those partners, watching my children grow up and not having to work some 12+ hour days.

my issue is PWC trying to gain press coverage by preaching the moral ground when they are no different to EY.

I am also of the opinion that we would have a better society if we had less extortionate pay and more values placed elsewhere other than money. so definitely not jealous, instead highlighting that thibgs do not need to be as they are.

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Replying to Elgin:
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By HUGH W DUNLOP
10th Oct 2014 16:25

Press coverage & moral ground

Well they certainly got that. Though perhaps not the type they hoped for, Leave you to judge how moral there actions were. A fine of $25M and a ban does not exactly inspire confidence.

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By mikefleming3028
08th Oct 2014 10:16

Morality and Tax

Is like trying to mix oil and water, give them a good shake and you get an emulsion that lasts for a short time and then nature takes its course and the two parts separate and return to their natural state.

Try not paying your tax on moral grounds, any moral grounds and see how the State reacts, it will not be pretty!!! 

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By jimeth
08th Oct 2014 12:17

Well said Dennis Nally!

If we all took the attitude in every area of life that we would have no regard to morality but only to legality then the world would be in a very sorry state indeed.  The attitude that anything is acceptable behaviour provided that it has not been specifically legislated against and can be interpreted as being within the letter of the law is a dreadful one.  In this regard, tax advice should not be regarded as different from anything else.

 

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By cmp1951
08th Oct 2014 13:06

Morality?

There are rules (Laws) - we abide by them (mostly).  If they want to change the Law, they will do that, and we will abide by that.

Discussions like these always remind me of a conversation I had at a General Election Count with a Politcian (he lost).  His attitidue to money was quite nicely summed up when, when asked about his Party's attitiude to taxation was, "What's in my pocket is mine.  What's in yours is mine as as soon as I pass a law to say it's mine."

If, after persuading us to give them our hard-earned money they did not then carry out immoral acts, looked after it, spend it wisely etc, I might be more persuaded to take a "moral" view to it all, but until then, the less we let them have the better for all concerned. 

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By mikefleming3028
08th Oct 2014 14:30

Enough said?

This is not the first time that this issue has come up:-

 

Matthew 22:20-22King James Version (KJV)

20 And he saith unto them, Whose is this image and superscription?

21 They say unto him, Caesar's. Then saith he unto them, Render therefore unto Caesar the things which are Caesar's; and unto God the things that are God's.

22 When they had heard these words, they marvelled, and left him, and went their way.

 

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Replying to Slim:
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By J Lessels
10th Oct 2014 16:13

See M Fleming's Matthew quote in context

But Jesus' answer is not as clear as you might think. Because, as Jesus well knew, and any Christian would tell you "The earth is the Lord's and the fullness therein". Psalm 24.

In that case, moral questions are inescapable in any aspect of life. 

I think Jesus was playing a trick on his questioners, who were in any event trying to trap him into treason.

 

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