The Mudcat Café TM
Thread #104214   Message #2140362
Posted By: Folkiedave
04-Sep-07 - 05:34 AM
Thread Name: BS: Why are they leaving the UK?
Subject: RE: BS: Why are they leaving the UK?
Yes paid tax in the UK for years, Folkiedave, in all probability a damn sight more than you. I also used the services of an accountant to make sure that I paid only what I had to.

In that case you clearly paid (as you say) a lot of tax.

But millionaires like the Vestey's didn't pay any at all and their scheme was only closed down in 1991. Millionaires like Philip Green don't pay any tax at all.

So I can't understand why you paid any tax - let alone a damn sight more than me, unless you really wanted to support the low-paid and the benefit claimants out of the goodness of your heart. On the other hand, perhaps you needed a better accountant.

Tell me why you paid any tax Teribus - these schemes are available to all - or were they not available to you for some reason, or was your accountant not up to speed?

"Tax avoidance is the legal utilization of the tax regime to one's own advantage, in order to reduce the amount of tax that is payable by means that are within the law. By contrast tax evasion is the general term for efforts by individuals, firms, trusts, and other entities to evade taxes by illegal means."

There you are you see - you can look things up when you want to. Now off you go and find out how Dewhirst's only paid £10.00 tax on profits of £2.3 million in 1978.

As for the quote of course by using the internet when you don't really understand what you are talking about, you only get half the story.

You see accountants and tax solicitors spend time DEVISING SCHEMES TO AVOID TAX and then testing them out with clients. Your accountant would have told you to put money into your pension scheme (it isn't tax avoidance though it is tax efficient, since generally speaking you pay tax on the pension when it is paid out), or you can claim this or that as a legitimate business expense. Your accountant may have told you to take income in dividend payments rather than salary. A bit of a fiddle since dividends are taxed at a lower rate. But some people spend time inventing tax avoidance schemes. Sometimes these are declared illegal by the Inland Revenue.

There is one scheme devised (NB devised) which involves circular loans to generate tax losses. It was registered in Delaware USA and generated losses via a German Bank. Although it is registered in Delaware and used a German Bank it was to avoid UK tax. See what I mean about devising schemes?

The scheme came to light when a dotcom. millionaire sued them. I won't go into the details but it involved billions of dollars of loans and the millionaire sued for the money it cost him in fees - £2 million incidentally just in fees for advice - when (eventually) it was declared fraudulent. It is still going through a long and complicated procedure of appeal, three to four years later. We, those of us taxed at source, have lost squillions through this tax avoidance scheme declared by the Inland Revenue to be illegal. So we pay extra whilst the tax avoiders screw us. And then we wait for it to go through the courts.

Incidentally you haven't yet told me who you think puts the money into tax-free off-shore accounts. Have you decided yet whether it is the poor or the rich?

Finally - what makes you think I am or have been a university lecturer? I do not remember mentioning it anywhere so I am intrigued. You been using the internet again?