Is Tax Evasion morally indefensible?
Is Tax Evasion morally indefensible?
Author
Discussion

Victor McDade

Original Poster:

4,395 posts

212 months

Sunday 7th August 2011
quotequote all
Tax evasion is illegal and thus something we'd want to avoid given the harsh penalties for those caught.

But what if you could get away with it, or even if the odds were in your favour, would you and should you take the chance?

As someone who is PAYE this question is not really one which I'm faced with yet however as I get older my previous feelings of disdain for such people has now gone and I'm pretty neutral to it now.

Our taxes pay for some incredible services, the NHS, the police, education etc etc but it also contributes to wars I don't agree with, a largely unaccountable EU superstate, a bloated and corrupt welfare state, an ever rising foreign aid budget. And with all political parties pretty much agreeing to the same things I have lost the democratic right to change things via the ballot box.

So where do you stand on this, given that the accountability of government spending is so low, should the moral responsibility of the tax payer to meet their legal obligations be lowered too?

mybrainhurts

90,809 posts

285 months

Sunday 7th August 2011
quotequote all
You mean we ought to be allowed to pay as much little as we want..?

I like that idea...smile

Steffan

10,362 posts

258 months

Sunday 7th August 2011
quotequote all
The difficulty in this is appreciating the difference between evasion and avoidance.

Under the Ramsay V IRC case, avoidance, generally defined as structuring business affairs to your advantage is legal. Evasion, dishonesty, is not.

All down to intent, which is a essentially an assessment of the reasoning behind an action not the action in itself. Very subjective area of thinking.


stitched

3,813 posts

203 months

Sunday 7th August 2011
quotequote all
Tax evasion is illegal.
Tax avoidance is not.
Most large companies and rich individuals avoid far more tax than is evaded so I see no moral reason to comply with the tax laws.

rufusgti

2,573 posts

222 months

Sunday 7th August 2011
quotequote all
The government continue to allow the super rich to evade taxes through their loopholes. Why should we then offer out our hard earned moneys to them? Of course we have to. Or I do at least on PAYE. But if I wasn't my attitude would be "If you want it, do the sums and come and get it".

We pay tax if we bank, spend or die with it. they get there dosh sooner or later.

tank slapper

7,949 posts

313 months

Sunday 7th August 2011
quotequote all
It's as morally indefensible as the government wasting enormous quantities of the money they take.

Puggit

49,822 posts

278 months

Sunday 7th August 2011
quotequote all
tank slapper said:
It's as morally indefensible as the government wasting enormous quantities of the money they take.
Saved me posting the same.

spikeyhead

20,564 posts

227 months

Sunday 7th August 2011
quotequote all
rufusgti said:
The government continue to allow the super rich to evade taxes through their loopholes.
Alternativedly, the government encourage the super rich to live here by providing a low tax option. Without them, our economy would be in worse shape than it is.

Don

28,378 posts

314 months

Sunday 7th August 2011
quotequote all
stitched said:
Tax evasion is illegal.
Tax avoidance is not.
Most large companies and rich individuals avoid far more tax than is evaded so I see no moral reason to comply with the tax laws.
Tax avoidance doesn't exist.

There is merely ensuring you pay the correct amount of tax. You do not have to pay more than you are asked for - the opportunities to claw back tax are there for a reason (mostly) and if you are entitled to them you would be MAD not to make use of them.

Tax evasion? That's refusing to pay what's due - quite possibly by lying although maybe only by witholding the truth when you are obliged by law to provide it.

"Avoidance" I uttely agree with - it's just doing what's right by yourself AND by society.
"Evasion" I can't support. I fking hate how the idiots waste our money but I don't think that's connected to contributing what you are obliged to...

98elise

32,765 posts

191 months

Sunday 7th August 2011
quotequote all
stitched said:
Tax evasion is illegal.
Tax avoidance is not.
Most large companies and rich individuals avoid far more tax than is evaded so I see no moral reason to comply with the tax laws.
Aviodance is totally legal though, if you have a pension, use any of your captial gains etc you are avoiding tax. The government sets the rules, and as long as you comply with them then all is ok.

Personally we have a BTL, and my OH recieves the Rent as she is a lower rate tax payer. This is legal ( regardless of the ownership share) but morally you could argue that we should split the rent.

deadslow

8,795 posts

253 months

Sunday 7th August 2011
quotequote all
Is Lord Ashcroft on here? I believe he is the acknowledged expert.

996c2

470 posts

195 months

Sunday 7th August 2011
quotequote all
The Greeks would say no but look where that got them.

johnfm

13,751 posts

280 months

Sunday 7th August 2011
quotequote all
Is tax avoiding any worse than benefits maximising?

On PH, yes.

Out there?

I think successive governments have given away their right to collect tax. They have shown repeatedly that they are not responsible enough to handle it.

I would, personally, like to pay an amount I think they deserve And put the balance (between my legal liabilty in qccordance to ITEPA) in escrow. But I am not allowed to do that.

MartinQ

797 posts

211 months

Sunday 7th August 2011
quotequote all
I would like an opting out system, where if you decide to take out private healthcare you can choose not to pay the NHS "part" of income tax. It could also translate to schools and refuse collection, etc. (also could open up the market to private companies). I can't imagine this idea translating well to emergency services though as there are no private police or fire services.

Eric Mc

125,790 posts

295 months

Sunday 7th August 2011
quotequote all
98elise said:
stitched said:
Tax evasion is illegal.
Tax avoidance is not.
Most large companies and rich individuals avoid far more tax than is evaded so I see no moral reason to comply with the tax laws.
Aviodance is totally legal though, if you have a pension, use any of your captial gains etc you are avoiding tax. The government sets the rules, and as long as you comply with them then all is ok.

Personally we have a BTL, and my OH recieves the Rent as she is a lower rate tax payer. This is legal ( regardless of the ownership share) but morally you could argue that we should split the rent.
I hope you have taken all the correct legal steps to ensure that your wife can claim 100% of the rental income.

You can't just "elect" to show it as her's on a tax return.

Deva Link

26,934 posts

275 months

Sunday 7th August 2011
quotequote all
98elise said:
Personally we have a BTL, and my OH recieves the Rent as she is a lower rate tax payer. This is legal ( regardless of the ownership share) but morally you could argue that we should split the rent.
When you say your OH, are you married?

Victor McDade

Original Poster:

4,395 posts

212 months

Sunday 7th August 2011
quotequote all
MartinQ said:
I would like an opting out system, where if you decide to take out private healthcare you can choose not to pay the NHS "part" of income tax. It could also translate to schools and refuse collection, etc. (also could open up the market to private companies). I can't imagine this idea translating well to emergency services though as there are no private police or fire services.
Tax breaks for those who use private healthcare, education etc is a great idea imo. Recommended many times by several of the Tory think tanks and policy advisors but cast iron Dave or Gideon do not have the balls to act on it. They're too scared of being accused of trying to create a two tiered health or education system.

Deva Link

26,934 posts

275 months

Sunday 7th August 2011
quotequote all
Victor McDade said:
Tax breaks for those who use private healthcare, education etc is a great idea imo. Recommended many times by several of the Tory think tanks and policy advisors but cast iron Dave or Gideon do not have the balls to act on it. They're too scared of being accused of trying to create a two tiered health or education system.
I suppose a few people dropping out using the NHS, schools or refuse collection in most areas wouldn't save those services much, and they'd have to maintain the capacity (or have it quickly available) to pick people up again when they needed to opt back in.

powerstroke

10,283 posts

190 months

Sunday 7th August 2011
quotequote all
Victor McDade said:
Our taxes pay for some incredible services, the NHS, the police, education etc etc but it also contributes to wars I don't agree with, a largely unaccountable EU superstate, a bloated and corrupt welfare state, an ever rising foreign aid budget. And with all political parties pretty much agreeing to the same things I have lost the democratic right to change things via the ballot box.

No all politcal partys dont agree to the same thing!!! it's just that joe public are to set in there ways of either voting for the red yelow or blue ties that we have lost the democratic right to change things via the balot box banghead

Wings

5,970 posts

245 months

Sunday 7th August 2011
quotequote all
Eric Mc said:
I hope you have taken all the correct legal steps to ensure that your wife can claim 100% of the rental income.

You can't just "elect" to show it as her's on a tax return.
One can however pay the partner/wife to both manage and maintain the property, including deductions for one's car fuel,telephone calls, postal costs etc.