Quote:
Originally Posted by martyh
I can't read the times' story you linked to as it's behind a pay wall ,but if i understand correctly what has been going on, is that people donate the money, claim tax relief on the donation whilst somehow managing to get most of the original donation back through various methods used by the charity .It may prove to be illegal what they are doing* ,if not then this would be stopped by a single tax rate as the tax relief on donations to charities would disappear .
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But why would introducing a single tax rate cause tax relief to disappear? It's there to encourage donations to Charity not to address the progressive tax system. Most tax dodges seem to be exploiting various other parts of the tax system, income tax is one of the simpler ones and harder to avoid unless people pay themselves little and give themselves massive bonuses.