I was going to tweet this but honestly, 140 characters isn’t enough.
As has been seen, tax avoidance is a very big thing at the moment given that a certain Prime Minister is pointing fingers and making assertations that certain types of tax avoidance are immoral.
I’m sorry…well, I’m not sorry, but what?!
First off, tax avoidance is perfectly legal. Its definition is ‘…the legal utilization of the tax regime to one’s own advantage, to reduce the amount of tax that is payable by means that are within the law.’ The US Supreme Court has stated that ‘The legal right of an individual to decrease the amount of what would otherwise be his taxes or altogether avoid them, by means which the law permits, cannot be doubted.’
In other words, we are allowed to reduce our tax liability by any and all legal means. In fact, I would infer that we are encouraged to do so. But you will notice that no mention is made of morals.
Here’s the thing, though. Morals or manners are like opinions and so are purely down to each individual person. What one person may find immoral another person may not. So I don’t see how spouting vitriol about someone doing something that is entirely legal is relevant other than to gain popularity or to divert attention away from something else.
Instead of decrying someone for doing what they are legally entitled to do, change the law and close the loophole. It is simple as that. Nobody has any right to moan when someone does something within the rules if the rules aren’t specific enough.
I’ve seen responses to this subject further bemoaning how the person earns millions and yet only pays 1% in tax.
First, I wasn’t aware that their earnings were a matter of public record.
Second. Basic maths here. 1% of 1 million is 10,000. That’s certainly more tax than I pay in a year via PAYE and I’m only an average wage earner.
Third. He should be fired from his role. Why? He’s not doing anything illegal which is usually the reason people get the boot. And technically, under the K2 scheme, he’s contracted out by the off shore employment company.
Fourth. Why don’t these people moaning find out how he’s supposedly reducing his tax liability (again, the K2 scheme – in no way illegal) and do the same?
Fifth. Don’t buy ticket’s to his shows if you disagree with how he handle his finances.
Sixth. I wonder what avoidance measures the Prime Minister and other ministers have employed in their own tax management. But I’m sure they are all using legal, ethical and moralistic avoidance tactics.
Seventh. These people that have lambasted the entertainer. I wonder if they’ve ever bought from an off-shore online store.
Does all this mean that I agree with the comedian? I did until he caved in without a fight.
Yeah. So didn’t fit in 140 characters.