2 Years Gaol For Half A Million, But Slapped Wrist For Billions.

[Canary42]

A 56-year old woman gets a 2 year gaol sentence for trying to avoid half a million tax.

https://uk.finance.yahoo.com/news/woman-jailed-trying-dodge-500-164606991.html

Vodafone, Google, Apple, Starbucks, etc however get away with billions.

Government for the rich, by the rich.

[janbee]

You said it Canary. Different laws, different rules for different income brackets. Very unfair.

[Gromit]

The two examples do not compare.

She lied to HMRC about the tax she owed. The declaration on the form clearly states that false information can result in a criminal prosecution.

Multinationals trading in the EU set up their European headquarters. That can be in any EU country of their choosing, and they are allowed to trade in all EU countries. Most Multinationals choose to register their Headquarters in Luxembourg because the tax regime is a lot more favourable than in the UK. Therefore any tax due on their EU trading is paid in Luxembourg. Nothing illegal, no lying and deception, so of course not prosecution or prison sentence.

[ummmm]

The former is illegal the latter isn't.

[Svejk]

I completely agree with, (gulp), Gromit.

[Svejk]

And, blimey, ummmm.

[waterboatman]

Money talks.

[Deskdiary]

What a breathtakingly stupid comparison.

I wonder how many billions the tax paying employees of these massive organisations pay in tax?

[sunny-dave]

Repeat after me (until it sinks in) :

"Avoidance is legal - even if morally wrong"

"Evasion is illegal - and you can go to jail"

[youngmafbog]

Get back on your lefty, politics of envy perch and get your facts straight before tweeting off like that.

[New Judge]

Since the question of morality has been raised, individuals and companies have a moral obligation to minimise their tax payments however possible within the law. Individuals should do so for themselves and their families. Companies should do so for their customers and shareholders. As has been clearly pointed out by Gromit and others, the large multinational concerns referred to reduce their tax bills as much as they can by careful use of (mainly EU) laws agreed by successive UK governments (not just the current one). I have shares in some large companies, many of which minimise their tax bills by various methods including moving their profits out of the UK. I would be most upset if their profits were unnecessarily deflated by payment of tax which could be legally avoided.

Their action is no different to an individual minimising his tax bill by investing in an ISA so that the interest from it (which would otherwise be subject to tax) is tax free. The law is there, it is available to everyone and those taking advantage of it do nothing illegal or immoral.

Tax take as a percentage of GDP has risen from 35% in 2001 (at the end of Labour’s first term in office) to over 42% today. Governments are obsessed with removing money from individuals and organisations when it is clearly not necessary to do so. But still we are told that resources are scarce and that vital services are under threat. If governments cannot get by on less than about one third of the nation’s earnings then they urgently need to consider what it is the State is funding and how it is doing it.

[sunny-dave]

We could start by sacking all the state funded lawyers :)