Talk Morgan Forums Community The Malvern Arms Tax dodging

I totally agree with both Dave W and Peter comments and am sick of the hypocritical rantings on this subject.
I very much doubt Lewis Hamilton would have been directly responsible for the decision on where to register his jet that is what he pays his management company for, and no doubt the people behind the program pay their accountants for similar advice.
As for having your salary paid abroad then loaning it back to avoid paying any tax then action needs to be taken to close that option instantly.

Worthers +8

Hear hear far too much pontification combined with weak Governance creates these situations - deal with it.

I pretty much agree. People who work for a wage (without all sorts of fancy fringe benefits) are taxed at source and have very little opportunity to buy goods without paying VAT. Sure there are small businesses that will take cash and cheat on income declarations and VAT but when they purchase goods they still have to pay VAT so it still contributes, all be it to a lesser degree.

One of the reasons VAT is so high is that it is seen as a way of collecting tax without relying on tax on income. In Italy there is a possibility that it will go to 25% next year. The only way in which this would be fair would be to reduce the income tax for ordinary wage earners, but naturally this will not happen.

Increasing VAT, in my opinion, is an excellent way to block the economy and will only increase cash "tax free" transactions. Ordinary people will by and large stop buying non essential manufactured goods and services.

The high income earners have developed a philosophy that greed is good and tax is bad and will happily take part in schemes, methods of payment, etc. etc. that will minimise their contributions whilst happily increasing their salaries etc with the justification that they have earned it.

I have been an optimist all my life but I am very pessimistic now about the economic future. I don't know when it will happen but I foresee a real crash in the economy of the developed world. The increasing inequalities between the rich and the poor, increasing unemployment and inflation leading to reduction in demand for goods and services, even the inflated cost of housing, will eventually have an effect.

We are sort of skimming along the surface now and kidding ourselves that everything is under control. When the crash comes I suspect it will be very rapid. As the economic pressure rises on the bulk of the population they will cease to buy anything but essentials, this will leading to mass lay-offs and company closures, social welfare systems will be unable to cope, and the whole situation could spiral down into a deep depression very rapidly.

What can be done about it? Nothing. Nothing will change until it is too late. And when it happens fundamentalism, racial and religious intolerance will gain momentum. It could make the break up of Yugoslavia look like a tea party.

Boy oh boy. Time I got off the soapbox and made myself a nice relaxing cuppa

How did they come to overpay their VAT in the first place?

All self employed cheat on their tax. I stand back and wait for an outburst of righteous indignation! It’s because they are in a position where they can. l worked professionally in an accountancy practice many years ago and served as a General Commissioner of Taxes for many years so l’ve seen it all. In the profession, at the completion of an audit, the accounts of the client had to be reviewed with a partner. I often expressed concerns about the private expenses being put through the books but that was between the partner and the client. The partner had the dilemma of turning a blind eye to the discrepancies or loosing a valuable fee payer. What could I do? Blab to the Revenue and get the sack? Oh what a tangled web we weave when first we practice to deceive!

I don't know the detail of the case but it is probably underclaimed input tax. A similar situation arose with universities in the 1990's which resulted in a three year cap being introduced after the consultants jumped on the money tree and banged in claims going back twenty odd years. Huge amounts were involved.

I see a lot in what Peter mentions. Perhaps I need some of that tea as well.

The massive increase in credit ratio to savings.
The aggressive selling of multiple lines of credit.
Short term pay day loans at XXXX% interest.
A lack of fiscal education to the legions entering "work" years now.
The entitled attitude of much of the complacent west.
At what point was a phone worth £1150 or £90/month. I love Apple but thats a joke.
Government's attitude to just increasing tax without increases return value.
Government unwilling to make difficult choices for the better due to press castigation.

When I travelled and saw the attitudes in other regions and countries I can see where the rot is setting in.

Perhaps I should place this in the SOAPBOX and put a fish joke on the end....

Peter, I agree with you.
A fine mess has been created - I'm not really sure by whom or how - and it is getting worse.

In the Telegraph today there is a report that Germany is discussing increasing its armed forces budget as they consider complete fragmentation of the EU by 2040 is a possibility and Germany must be able to defend its self.

I'll be 90 in 2042 and don't look forward to the mid/long term future with any excited anticipation. So I'll enjoy life now, because it may not be fun in the future.

I'm quite glad we don't have and are unlikely ever to have, Grandchildren.

We are discussing the flow on effect of fishcal irresponsibility that leads to net gains for the big fish but great pain for the small fry.