The evidence that Oxfam is not avoiding tax is unambiguous

Posted on

I wrote yesterday about the attack by the Institute of Economic Affairs on Oxfam suggesting that the claim that Oxfam were avoiding tax in two ways  was completely untrue.

Now the HMRC guidance on the use of Gift Aid by charities who have trading subsidiaries who sell goods as agent on behalf of donors with the resulting funds raised then being subject to a tax releif claim has been drawn to my attention.

Two things follow. First it says HMRC approve of charities having tax free trading subsidiaries and is entirely happy that such arrangements are subject to tax relief and, second, that the whole arrangement that Oxfam uses for Gift Aid has explicit HMRC endorsement.

In that case the suggestion that Oxfam is tax avoiding is absurd. To describe the IEA position as a straw man argument is to be polite to it.