TAX RELIEF - IT MAY BE LAWFUL BUT IS IT MORAL?
Jonathan Riley, (Times letters, October 25), makes
the valid point that on matters of taxation, party
leaders have little interest in supporting business.
A case in point is how the Government has
introduced a much tougher regime with regard
to what were legitimate claims for tax relief by
companies, in order to increase Treasury
Jonathan Riley, (Times letters, October 25), makes
the valid point that on matters of taxation, party
leaders have little interest in supporting business.
A case in point is how the Government has
introduced a much tougher regime with regard
to what were legitimate claims for tax relief by
companies, in order to increase Treasury
revenue. The mantra now is: it may be legal but
is it moral?
The result of the new test has been to confiscate
money that would have been used to expand
small-to-medium-sized companies and create
more jobs in an attempt to address the continuing
The result of the new test has been to confiscate
money that would have been used to expand
small-to-medium-sized companies and create
more jobs in an attempt to address the continuing
decline in tax revenues.
The line between what has been legal tax
avoidance through legitimate planning and illegal
tax evasion has become ambiguous, decided entirely
by HMRC's interpretation. Its main objective now is to apply
not only a legal test with regard to company tax-
The line between what has been legal tax
avoidance through legitimate planning and illegal
tax evasion has become ambiguous, decided entirely
by HMRC's interpretation. Its main objective now is to apply
not only a legal test with regard to company tax-
tax-planning schemes, but also one of moral
imperative. This will have serious implications for
SMEs, which will be left in no man's land when it
comes to financial planning. What has given the
the Government cover for this move has been
public outrage at celebrities' use of exotic
schemes, now deemed illegal, to reduce personal
tax liability.
Bleeding companies of vital capital to feed the
insatiable appetite for more public spending
is not the way to address the UK's
unsustainable level of national debt. Higher taxes
result in lower tax revenues. However, as has been
shown, the converse would be true if a flat tax were
introduced, combined with the abolition of a complicated
system of business tax reliefs.
SMEs, which will be left in no man's land when it
comes to financial planning. What has given the
the Government cover for this move has been
public outrage at celebrities' use of exotic
schemes, now deemed illegal, to reduce personal
tax liability.
Bleeding companies of vital capital to feed the
insatiable appetite for more public spending
is not the way to address the UK's
unsustainable level of national debt. Higher taxes
result in lower tax revenues. However, as has been
shown, the converse would be true if a flat tax were
introduced, combined with the abolition of a complicated
system of business tax reliefs.
,
-
Sent from my iPad
Sent from my iPad
