Random talk avoids issue.
TAX avoidance is back in the news and I've been a bit concerned about the way commentators are using terms such as "tax avoidance" and "tax evasion" randomly.
We need to be more accurate. Tax avoidance is legal and tax evasion is not, although lots of tax avoidance schemes are frowned upon.
Tax avoidance is about arranging your affairs in such a way that you pay as little tax as possible. Tax evasion is about hiding income and assets from HMRC.
An ISA is a tax avoidance scheme. You can take money out of your bank account, where you might pay tax on the interest, put it in an ISA, within limits, and not pay tax on the interest. A pension is also a tax avoidance scheme.
We hear a lot about how we need to get tough on the tax avoiders. But how can you "get tough" on something that's legal? What needs to happen is that the Government need to stop people not paying tax. They need to change the law so that certain forms of tax avoidance become tax evasion, and then prosecute those that are guilty of it.
|Printer friendly Cite/link Email Feedback|
|Publication:||Daily Record (Glasgow, Scotland)|
|Date:||Nov 10, 2017|
|Previous Article:||Self-employed shouldn't ignore potential pitfalls; The big issue.|
|Next Article:||Cut the cost of Christmas; on the money Brilliant money-saving tips and deals to make your cash go further CASH QUEENS From decorations to tasty...|