more reasonable methodology of dealing with tax avoidance concerns would
necessitate a more fundamental renovation of tax policy than has been on the
agenda in the UK for many years. In the short term, we can be assertive that
the Budget will bring a supplementary round of anti-avoidance measures.
both sides of the problem, my opinion is that both authorities and society,
should act within the law. Moreover, the main cause has to be the peace and
wellbeing of the population. Respecting the law, everyone can live happily.
Another recommendation, is government to take example of Scandinavian
countries, that are trustworthy, and caring about their people.
Mass media, likes to bring up cases where HMRC
accused rich people of tax avoidance and won in court. But what this really
shows? Is it reliable to believe only in rumours, or should the society develop
their critical thinking, and read between the lines?! Is the mass media fair in
its statements, or the community is just brain washed?
about this two as a hole, as a system that it actually is! Contradiction! First
statement contradicts second, and vice versa.
At the same
time, every person in UK, is he working or not, is paying VAT tax (equal for
everyone), on anything, he or she buys. Also sounds fair!
In UK there
are two ways of taxation VAT and income tax. As it is known, bigger your income
is, more taxes you have to pay. If to believe the authorities, this is fair. As
wealthier you are, more opportunities you have, to help your society then
someone who is working for the minimum wage, fair does.
TLRC of M. Gammie and I. Whiting (2016) “In some areas, the government is now
threatening to use retrospective legislation to ensure that taxpayers
contribute what ministers regard as their ‘fair share'”. What is the ‘fair
share’ everyone needs to pay?
would be doing research for cancer cure, whereby there would not be any
taxation on the income. After completing a self-assessment form, the researcher
can still get a letter saying that he owes money to HMRC. The only way to
demonstrate the contrary is going to court, and the law says that the person
appealing should pay all the court fees. So no matter if you winning or losing
the government still gets the money they wanted from you.
in Scandinavian countries, people are happy to pay taxes, as they know that
their money are actually contributing to the wealth of society. In UK, looks
like everyone forgot what taxes meant to be. Government is using taxation
instruments to rise capital, in different sectors.
researching on this matter, it is obvious that there should not be any issues
with lowing the tax amount within the law. More over there is only Parliament’s
mistake that such still exist. It is interesting, how today’s powers, in order
to cover their own errors, try to defame and show in a bad light ordinary
people that just want to get the real amount of money they earned.
specialists are claiming that the loopholes in the system were not “Parliamentary Intention”
there been years, since government promised to cover the gabs that occurred. From
the information above it is certain, that not only the individuals but also the
ruler powers are benefiting from the blurry margin among different tax
It is clear that, if there would not be gaps in the
tax law, no one would use them. Therefor would not be any need for spending
money on preventing tax avoidance, or dealing with its effects.
Loopholes in the UK tax system are
encouraging tax avoidance to happen.
the authorities are looking for the same easy methods to save their money, as
persons practicing tax avoidance do. In consequence, many companies are forced
to register and do their business overseas, where they will not pay over
taxations. This is how UK enterprises are bringing wealth to other countries,
not to their country of origin. There is no doubt that if government will not
blurry the uncertain line between legal and illegal, entrepreneurs will choose
to do business at home.
Unfortunately, in the same period of time, there have been enormously
increased the losses form tax evasion, over £8 billion per annum. From where
occurs the question: Why government is trying to find ways of prosecuting
people who are practicing tax avoidance, instead of chasing people, who are in
effect, breaking the law by evading taxes?
IFS S. Bond (2014) government’s efforts to tackle tax avoidance have become
more noticeable in last years. A recent study, shows that losses commencing
from tax avoidance have been minimised to £2 billion per annum, which are
published by HMRC (2011), states that “Government launched its new strategic
approach to tackling avoidance in June 2010”. In this article are reviewed new
tactics for blocking any attempts of individuals or companies in lowing their
tax liability. Despite the fact that opportunities are legal. It’s certain that preventing avoidance is much
more effective then dealing with the consequences. This is why, the tax system
is frequently changing.
is using legal methods for paying less tax, unlike tax evasion, that is non-declaration
or false declaration of income. Tax evasion is illegal and it can lead to
prison and huge taxations. Even though there is enormous difference between the
previous two, government press charges on both!
paperwork, it will be argued, the necessity of prosecution people or companies
that are practicing tax avoidance. First, to have a better understanding of the
thesis, it will explain what is tax avoidance and the difference between the
prior and tax evasion.
Should people practicing tax avoidance, be