Tax justice means being in favour of tax compliance. This requires that:
a. Taxpayers should seek to comply with the spirit of the law when managing their affairs;
b. Full voluntary and consistent disclosure should be made by tax payers to all tax authorities with interest in their affairs;
c. Taxpayers seek to declare their income in the territory where it can be best determined that the economic benefit of the transactions they undertook arose, irrespective of the tax consequence;
d. Tax payers do not use tax havens, trusts or other artificial structures to manipulate their taxation liabilities.
Being in favour of tax compliance means that we are opposed to tax avoidance and evasion. Tax avoidance and evasion include:
a. Taxation fraud, in all its forms;
b. Seeking to manipulate taxation law for the benefit of the taxpayer;
c. Taxation arbitrage;
d. Incomplete disclosure of taxation matters;
e. Inconsistent disclosure of transactions between differing taxation authorities;
f. Misrepresentation of the nature of transactions;
g. The use of tax havens;
h. The relocation of transactions for taxation benefit;
i. The use of artificial structures to secure a taxation benefit.
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[…] The reality is, of course, that tax justice is about each and every person (legal or natural) seeking to pay the right amount of tax (and no more) in the right place at the right time. That’s what we call tax compliance. […]
The canons of “tax justice” are riddled with subjectivity; “right amount” is , under the complexity of UK taxation law, a number subject to many legitimate techniques. Perhaps those engaged in the taxation debate should ponder the more useful general principles of Adam Smith on taxation; simplicity and transparency are more attainable than nebulous “social justice” derived nostrums.
Behind most taxation debates the the human impetus of envy. Hence high-paid individuals salaries are always quoted pre-tax, when nearly always over a third is already being redistributed via UK income tax. It is inconsistent to call for anti-fat cat taxes/tax reforms while ignoring the fact that the top earners already pay a disproportionate amount to the exchequer, a proportion that actually increased with the drop of the top rate to 40%.
As for the private equity debate,the moaners never consider that the existence of zero CGT on principal residences is far more of a windfall than taper relief on share subscriptions.That is because the many benefit from one relief, few from the other . So the vote motive is also at work in this debate.
Peter
A lot has changed since 1776…. you might ahve noticed.
Of course tax justice is subjective. All of life is. Only economists pretend otherwise. And they are wrong.
I always find yhose who quote envy project their own opinion. It’s not something I suffer from. I have learned the meaning of enough.
And top earners do not pay disproprtionately. They pay less than proprtionately. The top 10% of income earners in the UK have a lower overall tax rate than any other group bar those on national minimum wage. Please get facts right.
And yet again, we see the anti-democratic lobby inherent in those who argue against tax justice at play in your comments.
Why is it you are so contemptuous of society and most who live in it?
Richard