What do you think?

[enaid]

Prime Minister David Cameron has branded comedian Jimmy Carr "morally wrong" for seeking to avoid taxes.
Reports of Carr's tax arrangements suggest he is undertaking "straightforward tax avoidance", said the Prime Minister.
He said it was unfair on the people who pay to watch the comic perform that he is not paying his taxes like they do.
"I think some of these schemes - and I think particularly of the Jimmy Carr scheme - I have had time to read about and I just think this is completely wrong," he told ITV during a round of TV interviews in Mexico, where he is attending a G20 summit.
"People work hard, they pay their taxes, they save up to go to one of his shows... He is taking the money from those tickets and he, as far as I can see, is putting all of that into some very dodgy tax-avoiding schemes.
"That is wrong. There is nothing wrong with people planning their tax affairs to invest in their pension and plan for their retirement - that sort of tax management is fine.
"But some of these schemes we have seen are, quite frankly, morally wrong."
But Labour leader Ed Miliband criticised Mr Cameron's comments.
"I'm not in favour of tax avoidance obviously," he said.
"But I don't think it's for politicians to lecture people about morality. I think what politicians need to do is, if the wrong thing's happening, change the law to prevent that tax avoidance happening."
Carr is said to have used an aggressive, legal, tax-avoidance scheme which enables members to pay income tax rates as low as 1%.
The comic, who has famously lampooned fat cat bankers, reportedly protects some £3.3m a year by channelling cash through Jersey-based company K2.
He spoke out over the claims during a show in Tunbridge Wells, Kent, on Tuesday, reportedly saying: "I pay what I have to and not a penny more."
Carr is said to be one of more than 1,000 beneficiaries who shelter some £168m from the taxman each year using K2. HM Revenue and Customs (HMRC) said the K2 scheme was already under investigation.






http://uk.news.yahoo.com/jimmy-carr-morally-wrong-tax-says-pm-181104330.html

[enaid]

Re: What do you think?

Comedian Jimmy Carr has issued a statement apologising for his "terrible error of judgement" in using a tax avoidance scheme.

Earlier this week it emerged that Carr had been using an aggressive, legal scheme which enables members to pay income tax rates as low as 1%.The comic, who has famously lampooned fat cat bankers, was reportedly protecting some £3.3m a year by channelling cash through Jersey-based company K2.But in the statement Carr said he was "no longer involved" in the scheme and added that he "will in future conduct my financial affairs much more responsibly".He said:"I appreciate as a comedian, people will expect me to 'make light' of this situation, but I'm not going to in this statement as this is obviously a serious matter."I met with a financial advisor and he said to me 'Do you want to pay less tax? It's totally legal'."I said 'Yes'."I now realise I've made a terrible error of judgment. Apologies to everyone."He spoke out after Prime Minister David Cameron branded his tax dodging "morally wrong"

[Guest]

Re: What do you think?

A bit of a none story in my opinion, i was surprised that Cameron picked up on it,people have always used tax avoidance schemes, the revenue discovers the loophole eventually and plugs it up, them the accountants find another one, there is nothing new in this. Its a game that has been played for decades.

Makes me think someone is trying to draw attention away from the real stories, like the financial hole we are all in for instance.

Shame to see poor old Gary Barlow getting it in the neck, i think he does a lot of good work, still i suppose he could always move to the states a'la Elton and others then we would get none of his money.

D

[Sapphire]

Re: What do you think?

We have an accountant, its his job to make sure everythings kosher and of course that we pay as less tax as possible, it's what we pay him for.

In my opinion this is no different to someone say claiming benefits and working cash in hand on the side, think of how many millions of pounds of tax is avoided in that way.

[Guest]

Re: What do you think?

In my opinion this is no different to someone say claiming benefits and working cash in hand on the side, think of how many millions of pounds of tax is avoided in that way.

One difference of course is, what Mr Carr and co do is perfectly legal. I think what you are referring to is evasion which isn't.

D

[New_Age_Biker]

Re: What do you think?

When was the last time a UK citizen deliberately paid more tax than they were supposed to?
Most accountants are charged by their clients to reduce their tax payments to a legal minimum
If the HMRC find the law has been broken then they will take appropriate action

Lets face it, it's a bit rich for a politician to preach morality following the expenses scandal

[Guest]

Re: What do you think?

When was the last time a UK citizen deliberately paid more tax than they were supposed to?
Most accountants are charged by their clients to reduce their tax payments to a legal minimum
If the HMRC find the law has been broken then they will take appropriate action

Lets face it, it's a bit rich for a politician to preach morality following the expenses scandal

Absoluely

[enaid]

Re: What do you think?

I would ask what is the difference between evasion and avoidance as when looked up in the dictionary they both amount to the same sort of actions.

Evasion : the act of avoiding something that you do not want to do or deal with : the act of evading something

Avoidance : the act of keeping away from or preventing from happening

So how can these 2 words have such different meanings when it comes down to money?

[Guest]

Re: What do you think?

Notionally, the words avoid and evade often are employed synonymously in everyday discourse. In the context of taxation, however, frequently these concepts are ascribed different connotations demarking the line between conduct which is legal and that which is not. It is well recognized that it is not considered untoward for one to avoid taxes by arranging one's affairs so as not to incur tax. "On the other hand, purposely evading of taxes, known to be due and payable, connotes the taking of active steps to elude and shirk one's obligation to pay taxes which have been incurred and are due and owing

D

[miliitant]

Re: What do you think?

i wonder how many of camerons cabinet have off shore accounts and i am yet to see their published accounts on income and expenditure where tax is involved

funny that

[labman]

Re: What do you think?

evasion

[ih-vey-zhuhn]   Example Sentences Origin
e·va·sion

5. an act or instance of violating the tax laws by failing or refusing to pay all or part of one's taxes.






avoidance

[uh-void-ns]   Example Sentences Origin
a·void·ance

   [uh-void-ns] Show IPA
noun

2. Law . a making void; annulment.

Like many words, they have different meanings in different contexts.

I don't believe there is anything wrong in what Jimmy Carr is doing. It is legal, so what is the problem. If he was evading it, it would be different.

I don't think many politicians have morals until it comes to criticising other politicians.

[enaid]

Re: What do you think?

Ok so what he is doing is legal purely and simply because he has sent his earnings abroad before they have gone into our tax system, therefore he has no tax bill and he is therefore not evading tax?
So because he does this he is merely avoiding tax which is fine?

Poor old Lester Piggott was jailed for tax FRAUD another word put in the mix to suit the occasion me thinks.

[Sapphire]

Re: What do you think?

So we are facing the illegal v immoral here ???? As far as I know its not illegal to have offshore accounts or employ an accountant to find the little clauses that enable a person or company to pay less tax, I do the latter for both my personal and my business, but is it immorral ? I think not, in fact I still pay tax, as does someone like Jimmy Carr, we just don't pay the amount we would without the accountants expertise.

Now..... lets broach the question of people working cash in hand and not paying tax, that is illegal and some may say its immoral, so is falsifying expenses as the MP's did.

[enaid]

Re: What do you think?

Lets put into the mix the majority who do not have a chance to get their tax at a discount
Paye and all the taxable benefits (and yes there are quite a few of those)

• Bereavement Allowance
• some Incapacity Benefit payments - not taxable for the first 28 weeks
• some Income Support payments - not taxable if you haven't signed on as unemployed and you're looking for work
• Employment and Support Allowance - contribution-based (if you have paid enough National Insurance contributions)
• pensions payable under the Industrial Death Benefit scheme
• Carer's Allowance - child dependency additions are not taxable
• Jobseeker's Allowance
• retirement pension - the State Pension is taxable but, unlike company pensions, it's paid to you without tax being taken off so you need to tell your Tax Office you're getting it
• Statutory Sick Pay
• Statutory Maternity Pay
• Widowed Parent's Allowance

I would love an accountant to have a stab at sending them abroad and sent back as a loan tax free.


As for cash in hand work I wonder if someone has had a guess at how much that costs the country per year.

[Hurricane Puffrose]

Re: What do you think?

Why is he just picking on Jimmy Carr? Personally I find the man arrogant and odious, but that doesnt mean he can be targeted and singled out.

As far as I understand things, people with a shed load of money (Jimmy Carr, Doddy, you name them) are actively encouraged to have an offshore bank account, its a way of them saving a fortune, but on the other hand, they are selling out mahoosive venues and peoples jobs are reasonably secure.

Whats my poor Gary Barlow done to incur the wrath of Cameron? Doesnt he realise the BILLIONS of pounds Mr Barlow raises are not as a tax loophole, but cos he actually CARES about what hes doing, and is a decent man with principles? The man deserves a knighthood, not abuse!