Comments on: Tax compliance, avoidance and evasion. Getting the language right. http://www.taxresearch.org.uk/Blog/2006/10/30/tax-compliance-avoidance-and-evasion-getting-the-language-right/ Richard Murphy on tax and corporate accountability Tue, 06 Jan 2009 12:22:23 +0000 http://wordpress.org/?v=2.6 By: Richard Murphy http://www.taxresearch.org.uk/Blog/2006/10/30/tax-compliance-avoidance-and-evasion-getting-the-language-right/#comment-2254 Richard Murphy Tue, 07 Nov 2006 12:59:36 +0000 http://www.taxresearch.org.uk/Blog/2006/10/30/tax-compliance-avoidance-and-evasion-getting-the-language-right/#comment-2254 I agree with David that govenment should not abuse the rules. I protest when they do. The remiander of his argment is, I'm afraid, without foundation. Charles is right. This has just crept into UK law (and very welcome it is too) via what is called the Halifax ruling from the ECJ. The Revenue would love such a provision. The Treasury claim it cannot be drafted. I doubt that. I think it can be, but the spirit is not willing enough as yet. That's because they continue to look at rules, not principles. I agree with David that govenment should not abuse the rules. I protest when they do. The remiander of his argment is, I’m afraid, without foundation.

Charles is right. This has just crept into UK law (and very welcome it is too) via what is called the Halifax ruling from the ECJ. The Revenue would love such a provision. The Treasury claim it cannot be drafted. I doubt that. I think it can be, but the spirit is not willing enough as yet. That’s because they continue to look at rules, not principles.

]]> By: Charles http://www.taxresearch.org.uk/Blog/2006/10/30/tax-compliance-avoidance-and-evasion-getting-the-language-right/#comment-2046 Charles Fri, 03 Nov 2006 12:02:18 +0000 http://www.taxresearch.org.uk/Blog/2006/10/30/tax-compliance-avoidance-and-evasion-getting-the-language-right/#comment-2046 The French have a general rule that using tax loopholes in a abusive manner is "contrary to the spirit of the law" and the use of such loopholes is condemned by the Courts. If the UK government is serious about tackling such abuse, how easy would it be to legislate in this direction? The French have a general rule that using tax loopholes in a abusive manner is “contrary to the spirit of the law” and the use of such loopholes is condemned by the Courts.
If the UK government is serious about tackling such abuse, how easy would it be to legislate in this direction?

]]> By: david barker http://www.taxresearch.org.uk/Blog/2006/10/30/tax-compliance-avoidance-and-evasion-getting-the-language-right/#comment-1982 david barker Thu, 02 Nov 2006 17:05:22 +0000 http://www.taxresearch.org.uk/Blog/2006/10/30/tax-compliance-avoidance-and-evasion-getting-the-language-right/#comment-1982 If avoidance is wrong why does HMRC collect tax by application of rules even if the result is unfair. (I can give many examples) A very small error in drafting a contract or timing of a transaction can be caught. Do I hear HMRC offering not to pursue. Therefore what is the difference in tax payers using these rules to save tax. As always this is a one way arguement. HMRC will strictly enforce rules but when you use the rules to save tax you are a nasty avoider. I believe there is an impending funding crisis appearing due to government mismanagement the money has to be found somewhere. If avoidance is wrong why does HMRC collect tax by application of rules even if the result is unfair. (I can give many examples) A very small error in drafting a contract or timing of a transaction can be caught. Do I hear HMRC offering not to pursue.
Therefore what is the difference in tax payers using these rules to save tax. As always this is a one way arguement. HMRC will strictly enforce rules but when you use the rules to save tax you are a nasty avoider.
I believe there is an impending funding crisis appearing due to government mismanagement the money has to be found somewhere.

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