HMRC Is Shite

HMRC Is Shite
Dedicated to the taxpayers of Britain, and the employees of Her Majesty's Revenue and Customs (HMRC), who have to endure the monumental shambles that is HMRC.

Monday, 28 April 2008

Tax Evasion vs Tax Avoidance - Clueless

How depressing to see that a tax "professional" doesn't seem to know the difference between tax "evasion" and tax "avoidance", and spends his time campaigning against avoidance.

"But in the real world the fact that there is no clear distinction between tax evasion and avoidance does matter. And it's this ability to see beyond the pointless argument on definition to the reality of life as it actually is that makes all the difference."

Source Richard Murphy.

I assume that he does not use his personal allowances?

Were he to do so that would be tax avoidance.

Even more depressing is the fact that:

-We are both members of the ICAEW (FCA's)

-We both qualified, not at the same time, at KPMG

-We both featured in Accountancy Age's 2006 Top 50 Financial Power list (he was 42nd, I was 11th)

Sadly the government uses people such as Richard Murphy to justify their increasingly hostile policy towards legitimate tax avoidance.

One more time, for Richard's benefit:

1 Tax avoidance (legitimately reducing your taxable income) is legal, it is tax evasion (hiding taxable income) that is illegal.

2 We all practice tax avoidance by the very fact that we use personal allowances, isa's, tax credits etc.

Tax avoidance is legal, tax evasion is illegal.

Is that clear?

Tax does have to be taxing.

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