Cameron and the anti avoidance zealots will be most distressed to learn that approximately 55,000 HMRC staff are going on strike over job cuts and "creeping privatisation". Sky Tyne and Wear are of the view that the strike has been inspired by Jimmy Carr (a rather daft idea, given that the vote was taken sometime before Carrgate).
Anyhoo, the Public and Commercial Services (PCS) union members are protesting about plans to cut 10,000 HMRC posts by 2014/2015.
Ironically, according to the union, the strike is also being used as a warning against cutting resources futher; as PCS is of the view that the cuts increase the loss of tax via illegal tax evasion and via legal tax avoidance schemes.
The former point has validity, the second doesn't as tax avoidance is (by definiton) legal and legislation as to what is legal/illegal is the domain of the politicians not HMRC or PCS.
HMRC are quoted by the BBC:
"We are seeking dialogue with the PCS to address their concerns and will work to minimise any disruption to our customers.The strike means that phone calls in affected offices may well go unanswered ('cough'), it will be followed by other forms of action such as a ban on overtime.
In our 2010 spending review the government made £917m available to us to tackle avoidance, evasion and fraud. This is being used to increase our tax take from compliance work by £7bn a year in 2014/15 which we are on target to do."
Tax does have to be taxing.
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Looks like the start of another good week for HMRC!
ReplyDeleteWonder what crap the politicians will spout as they are rolled in front of the cameras this time.
Following the inevitable England defeat at the penalty stage the country won't be in a good mood either way.
BTW pacesetter whiteboards allegedly have their own H&S risk assessments, didn't realise it was that bad but was told they come packed with a roll of hazard tape they are that dangerous!
Dear Ken and other fellow pilgrims, especially those on strike today.
ReplyDeleteWas I dreaming when I heard the PM refer critically in his speech today to people called CUSTOMERS when they are in fact CLAIMANTS.
I'm not sure but I think the lead comment was something like " lwads to incredibly damaging ideas....."
FFS whatever next,PACESETTER RIP, buy your used whiteboard here?
You might wish to expand on this Ken, be my guest.
Ooops, typo! Please substitute the word leads for lwads on line 4.
ReplyDeleteLOL :)
Of course HMRC and the rest of the Civil Service are facing the imposition of Regional Pay, the proposal to impose Regional benefits was what the Prime Minister was waffling on about.
ReplyDeleteMy view is that we should all accept these proposals as long as we get Regional Taxation, direct and indirect taxes alike, and Regional utility bills etc. otherwise why the feck should I pay a the same amounts as someone on the highest rate of Regional pay?
HMRC IT would suffer total failure trying to work out who pays what on RTI!
"...the second [point, that cuts increase the loss due to avoidance] doesn't [have validity] as tax avoidance is (by definiton) legal and legislation as to what is legal/illegal is the domain of the politicians not HMRC or PCS."
ReplyDeleteOh dear, Ken. I see you're still wrestling with the whole avoidance thing.
As has been pointed out before, although it may be legal to enter into avoidance schemes, that doesn't mean they all necessarily work (here, for example, is one that didn't!). Now whose job do you suppose it is to investigate them in order to establish whether they work?
By what is legal and illegal being the domain of politicians, I'll assume you mean "making laws" otherwise the judicial system would be a bit surplus to requirements. Anyway, which organisation's job do you suppose it is to advise politicians on the sort of shenanigans people are (legally) up so they can make laws to block the stuff that goes against their policy intentions?
Laying off the people whose job it is to do these things will lead to increased losses due to avoidance. Simples.
Yours zealously,
Stew G