Thought for the day: tax avoidance and ethics

Posted on

Thought for the day (or at least, from Norwich Quaker meeting, this morning):

From its earliest days our Society has laid great stress on honesty and the payment in full of debts justly incurred. Though social conditions have undergone great changes over the years of our Society's history, so that much of the advice given in the past may seem out of date, it is well to remind ourselves that the principles underlying the advice have not changed. Since we believe that all people are the children of God, we cannot take advantage of others by any form of dishonesty, whether in buying or selling goods, in business or privately, or as employees by failing to give an honest return in labour for the pay we receive. When we have received goods or services, we shall be punctual in making payment of the price agreed on, and we shall not attempt to evade our proper obligations to the community by way of taxation.

1959; 1994

This comes from Quaker Faith and Practice, and I am rather pleased to note that it dates from 1959 and was renewed in 1994. I am a member of the Quakers, bit happen to think this sound social thinking based on a strong wisdom tradition whether you are of any faith or none at all.

Why did it come to me during meeting this morning? I think in response to the many challenges that a couple of blogs here (and here) this week raised, including the challenge as to whose morality was to apply if morality is to have any impact on tax. My answer to that is that Quakers, with others, bring centuries of thinking on such issues to the matter of tax and morality - and represent strong wisdom traditions that cross cultures on such issues. Those who deny the role of morality in tax seek to ignore those traditions, and something more fundamental too, which is the ethical code they embrace. Those cross cultural traditions, which are also reflected in the philosophy of Kant and Rawls for those who do not wish to go near a faith based answer to such questions, are based on a simple but highly effective philosophy that demands that we treat others as we would expect to be treated ourselves,which is reinforced when it comes to tax by asking what the outcome would be if everyone behaved in the way we thought suited us best. If the answer to that question is clearly of detriment to society at large then the imperative is not to act in that way.

I condemned a judgement for suggesting accountants had to make tax abuse available to their clients, either themselves or by referral to others (and still maintain that is exactly what the case requires, although others deny it). But let me be equally clear; I think the taxpayer who brought the case made a serious error of judgement with regard to his original motive, and in bringing the case against the accountant. What would happen if everyone did as he did? Would there be the society of which he so clearly wanted to be a part that he applied for asylum to live in it? The answer is clearly not. In that case he failed to consider others as much as he considered himself and he failed to consider the consequences for all of his actions. On that basis his action was, I think, morally wrong.

It's unsurprising that the Quaker tradition says that: it's based on consideration and respect for others that is absent in tax abuse. And in the process it makes the case for morality being a key consideration not just in creating tax law but in deciding how it should be applied.

The judge got his decision wrong: his judgement failed the test of enlightened, liberal jurisprudence in my opinion.

But the case should never have reached him in the first place in my view. The taxpayer should have realised hos inappropriate his claim was and should never have undertaken it, in my opinion. The outcome of his doing so is harmful to society at large. And that's precisely why it will need to be reversed in due course.


Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:

You can subscribe to this blog's daily email here.

And if you would like to support this blog you can, here: