Results are out! Find what you need...fast. Get quick advice or join the chat
Hey there! Sign in to have your say on this topicNew here? Join for free to post

M103 - Tax Avoidance Motion

Announcements Posted on
Applying to Uni? Let Universities come to you. Click here to get your perfect place 20-10-2014
    • 3 followers
    Offline

    ReputationRep:
    (Original post by internetguru)
    Yes banning offshore bank accounts and blatant fraud such as having your wife listed as the business owner whilst she lives in Monaco are two easy measures to prevent tax avoidance. Yet you oppose banning it why?
    Because they are almost impossible to legislate for. You are proposing to ban UK residents from putting any money in non-UK banks whilst banning non-UK residents from owning businesses in the UK. I'd imagine the immediate effects to be a severe worsening of relations with other banking nations and a huge outflow of businesses from the country.
    • 2 followers
    Offline

    ReputationRep:
    (Original post by chrisawhitmore)
    Because they are almost impossible to legislate for. You are proposing to ban UK residents from putting any money in non-UK banks whilst banning non-UK residents from owning businesses in the UK. I'd imagine the immediate effects to be a severe worsening of relations with other banking nations and a huge outflow of businesses from the country.
    Non UK residents can own businesses in the UK if they truly are non UK residents. The problem is that they are UK residents for half of the year yet claim not to be UK residents. Banning British people from keeping money in offshore bank accounts would have no negative consequences. Foreign banks have no right to shield people from their tax contributions.
    • 3 followers
    Offline

    ReputationRep:
    (Original post by internetguru)
    Non UK residents can own businesses in the UK if they truly are non UK residents. The problem is that they are UK residents for half of the year yet claim not to be UK residents. Banning British people from keeping money in offshore bank accounts would have no negative consequences. Foreign banks have no right to shield people from their tax contributions.
    The solution to the use of offshore accounts to avoid tax is not to ban use of non UK banks, as this would probably cause other countries to reciprocate, damaging our financial sector hugely. The only way to beat offshore tax evasion is to secure agreements with the governments of the nations involved.

    As to adjusting the requirements for UK residence, we would simply cause businessmen to avoid the UK entirely, which would be damaging for business in the UK.
    • 2 followers
    Offline

    ReputationRep:
    (Original post by chrisawhitmore)
    The solution to the use of offshore accounts to avoid tax is not to ban use of non UK banks, as this would probably cause other countries to reciprocate, damaging our financial sector hugely. The only way to beat offshore tax evasion is to secure agreements with the governments of the nations involved.

    As to adjusting the requirements for UK residence, we would simply cause businessmen to avoid the UK entirely, which would be damaging for business in the UK.
    You really think tax havens are going to negotiate over this?
    • 3 followers
    Offline

    ReputationRep:
    (Original post by internetguru)
    You really think tax havens are going to negotiate over this?
    http://www.hmrc.gov.uk/taxtreaties/ukswiss.htm

    Yes. I think they will.
    • 10 followers
    Offline

    ReputationRep:
    This motion is pointless since the Tax Act (2011) changed the TSR tax system. That being said though, the idea that's being peddled that Jimmy Carr paid loads of money for some hyper-intelligent lawyer to find a secret mistake-turned-loophole is quite funny. It's simple: the current IRL tax system is directed at income, more specifically income that is gained by a UK resident. It doesn't take a genius to realise that if you don't earn anything you don't pay tax, and if you create a company in a low tax country which 'earns' the money for you, you pay peanuts. This isn't a loophole, it's just a basic limitation (or weakness) of income-based taxes and is part of the reason why LVT is a much better tax system.

    Another example is Sir Philip Green having his wife as the one who owns his company and then having her declare her residence as Monaco. No secret bank accounts necessary, most people who have secret bank accounts do so to dodge legal scrutiny anyway - there is nothing illegal about any of this. You can't pass a law to stop people from living in other countries or starting businesses there, and neither can you negotiate with so-called 'tax havens' to disclose activities which are not illegal or to synchronise their tax levels with our own.

    That being said though, I completely support Jimmy Carr's and Sir Philip Green's actions - avoiding being raped by a stupid tax system is admirable endeavour.
    • 25 followers
    Offline

    ReputationRep:
    (Original post by AspiringGenius)
    I think this is all well and good, but what are Labour proposing we actually do? You've outlined nothing at all.

    The socialist party could propose to end world hunger, but without any plan, how is this realistic?

    By shutting this tax avoidance scheme you are opening others. What are you going to do to change the fundamental problems?
    Labour are currently writing a bill internally and will get it into the House for debate very soon. The main purpose of this motion was to start debate.

    We will outline the problems that we are going to deal with in the bill and notes at the end.
    • 2 followers
    Offline

    ReputationRep:
    (Original post by chrisawhitmore)
    http://www.hmrc.gov.uk/taxtreaties/ukswiss.htm

    Yes. I think they will.
    http://www.guardian.co.uk/uk/2012/ju...e-tax-backlash
    • 3 followers
    Offline

    ReputationRep:
    Interesting (also phenomenally lucky timing). We'll have to see how that ends up, but I don't think it is much more than idle talk.
    • 0 followers
    Offline

    ReputationRep:
    Interesting argument, i would fully support them separating from us if they felt it was in their best interests.
    • 116 followers
    Offline

    ReputationRep:
    (Original post by RoryS)
    Labour are currently writing a bill internally and will get it into the House for debate very soon. The main purpose of this motion was to start debate.

    We will outline the problems that we are going to deal with in the bill and notes at the end.
    Oh... Sorry

    (hides head in shame)
    • 25 followers
    Offline

    ReputationRep:
    (Original post by AspiringGenius)
    Oh... Sorry

    (hides head in shame)
    No worries
    • Thread Starter
    • 20 followers
    Offline

    ReputationRep:
    This is in cessation.
    • Thread Starter
    • 20 followers
    Offline

    ReputationRep:
    This has been withdrawn.
Updated: July 6, 2012
New on TSR

A-level results day

Is it about making your parents proud?

Article updates
Reputation gems:
You get these gems as you gain rep from other members for making good contributions and giving helpful advice.