The Fair Tax Mark has commissioned new polling as part of Fair Tax Fortnight. It included these findings on public confidence in the audit profession.
There is much to encourage me in there.
First the attitude to auditors is telling.
But I am also fascinated by the answer to the question on all companies having to file accounts, which I admit I wrote.
I believe that the public are right to think that this is really important for tax justice.
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48% trusting HMRC is higher than I would have expected.
But then most people don’t pay that much attention to the business and finance pages.
How many times do people have to be told by wealthy gobshites, that tax is optional when you’re rich enough before they realise it’s affecting them and their prosperity and the prosperity of the country they live in?
Actually , when I think again …over half the population doesn’t trust HMRC to do it’s job.
That’s fairly damning.
For what it’s worth here’s how I would’ve answered if polled.
1) I would trust a company auditor to be completely neutral about as much as I could trust flying to the moon on a broken vacuum cleaner. I Would automatically assume, rightly or wrongly, that an audiotor’s salary and standing within their company would be dependent on ‘playing the game’ to his/her employees liking.
2) Along with the 49% of respondents, I disagree with this one too. Surely an accountancy firm auditing another company and, at the same time, offering tax avoidance advice is a contradiction in terms at the least, and a conflict of interests at worst? I kind of assumed that was actually illegal. If not, it should be in any sane society.
3) Undecided on this one. I already thought companies of all sizes had to report on profits to the Inland Revenue. How else do they get taxed?
4) Can’t give any answer at all to this question as I don’t even know what “public procurement leveraged to encourage responsible tax planning” actually means. That went totally over my head.
The trials & tribulations of being an accountancy numpty (Spell Checker says tympanum… how the heck did that happen?)
P.S. Just googled tympanum. It’s an eardrum…. I’ve learned something today, if not about leveraging public wotsits. If I ever have to go to the doc’s with ear ache I shall take great pleasure in telling him that my blasted tympanum is playing up something rotten. Knowing him, he’ll probably send me packing with a flea in my ear instead of antibiotic drops for being a smart arse, so maybe not. I’ll google leveraging now.
@ myself
Googled leverage : “In accounting and finance, leverage refers to the use of a significant amount of debt and/or credit to purchase an asset, operate a company, acquire another company, etc. … This means that a corporation’s debt includes bonds payable, loans from banks, loans from others, accounts payable, and all other amounts owed.”
Hmmm…. Does that mean if I wanted to buy a giant widget for two grand, and I took out a bank loan for a grand and also called in a debt owed to my company of a grand and bought my T Rex Widget with that combo of finances, have I just done leverage? A bit like a see-saw is on a lever? Up/down, up/down; get the balance right and you’re level pegging? Is leveraging balancing the books a bit like a plank of wood on a see-saw?
Calling in the debt is not leverage per se
The loan is
Since almost all working capital in a company involves equating revolving assets (debt owed to you; stock of goods and work in progress and cash less sums owing) it necessarily involves see saw leverage though, as you suggest
Sandra
Thanks
Re 3: The aim here is to have all companies place their full accounts showing tax paid on public record. 90% d9 not have to do that at present.
Re 4: the language is cumbersome. It refers to whether or not government should be allowed to prefer to buy from companies who can prove they pay their tax
“…..send me packing with a flea in my ear instead of antibiotic drops….”
I got a tiny bottle of very expensively packaged Sodium Bicarbonate ….:-)
@ Andy Crow
Bi Carb for wonky ears? First I’ve ever heard of that one. Upset stomachs yes; even if bicarb is the second vilest drink on earth. The No.1 vilest drink in the universe being gin… YUK! Tastes like Old Spice after shave lotion that’s had burnt matchsticks steeping in it for 6 weeks. Not, you understand, that I’ve ever drank Old Spice aftershave with burnt matchsticks in it, but I can imagine that imagined concoction tasting just like gin.
@ Richard Murphy
Thanks for the explanations; much appreciated.
Re 3) Blimey! Only 10% currently make their tax records public. I thought loads already did except for the titchiest of one/two person set ups. I think titchy set-ups should be exempt as they have enough paperwork to contend with and not enough resources to cope with even more stuff. Different for the likes of Google, Amazon, etc, though. No wonder the latter get away Scott free with tax murder.
Re 4) Why didn’t they just say what you said? That’s crystal clear; their question was about as clear as mud from the black lagoon.
I can now give my answer to question 4. Yes, governments should be allowed to prefer to buy from companies who can prove they pay their tax. I’d go further, it should be a requirement that private companies wanting government contracts should prove they pay their taxes. On 2nd thoughts, stuff it just being a requirement, it should be law. No full disclosure, no contract, simple as.
Sandra Harvey says:
“Bi Carb for wonky ears? …” Well to be fair it was only to soften wax, but I put it down the sink and used olive oil anyway.
If the bicarb tastes foul you’re putting too much in. A pinch in a tumbler of cold water is plenty. Not even as much as a quarter teaspoon. Excellent for ‘heartburn’. I wouldn’t give you a pound a ton for Rennies.
You can’t not like gin. There are hundreds of different gin variants. There’s one you’d like, you just didn’t find it yet. And if you are going to drink it from ashtrays it might take some finding 🙂 (And contrary to rumours you may have heard it does not have to be Gordon’s)
And if you have a downer on old spice drink it in better company 🙂
Or you could play it safe and stick to scotch.
Slainte! 🙂