Tax avoidance - spotlight on accountants

[Osem]

Accountancy firm PricewaterhouseCoopers (PwC) has been accused of promoting tax avoidance "on an industrial scale", in a report by MPs.

It is said to have helped hundreds of clients cut their corporation tax bills by setting up bases in Luxembourg.

Earlier this week the Archbishop of Canterbury said companies should pay tax wherever they earned their profits.

PwC said it disagreed with the Public Accounts Committee report but added that the tax system was "too complex".

http://www.bbc.co.uk/news/business-31147276

What???!!! Accountants testing the boundaries/scope of tax regulation???!!!

Surely that'd be a bit like lawyers testing the boundaries/scope of the law wouldn't it?

Seriously, are they really surprised? what on Earth did they think accountants do, help their clients pay more tax?

[arcimedes]

Its time we worked out if tax avoidance is illegal, immoral or what. Tax evasion is illegal, what we need is a new word for aggressive tax avoidance.

[Osem]

Originally Posted by arcimedes

Its time we worked out if tax avoidance is illegal, immoral or what. Tax evasion is illegal, what we need is a new word for aggressive tax avoidance.

Therein lies the problem. The tax system is so complicated it's impossible to make a categoric determination on that.

[Ignitionnet]

Originally Posted by Osem

Therein lies the problem. The tax system is so complicated it's impossible to make a categoric determination on that.

I believe our tax code is about the most complex in the world. It's no wonder it's full of holes. Needs reform but no-one can be bothered as it'd lose them donations from the likes of PwC.

[Ramrod]

Originally Posted by Osem

Seriously, are they really surprised? what on Earth did they think accountants do, help their clients pay more tax?

I had an accountant like that once. I realised that we had to part ways when he sat there and said to me "I think you might have a bit more tax to pay there but I'm not sure. I'll look into it".....rather than "I'll see if I can get round that"
Now I have one that saves me a shedload of tax.
The reason that I use tax avoidance schemes is that I would otherwise be taxed unfairly (I believe) highly.
If the government wants to stop tax avoidance they should simplify the rules.
The same flat rate (somewhwere in the 10-20% range) for everyone. It would be fair, transparent and I suspect that it would raise far more revenue.

---------- Post added at 18:46 ---------- Previous post was at 18:44 ----------

Originally Posted by arcimedes

what we need is a new word for aggressive tax avoidance.

Common sense?

[Osem]

Originally Posted by Ramrod

I had an accountant like that once. I realised that we had to part ways when he sat there and said to me "I think you might have a bit more tax to pay there but I'm not sure. I'll look into it".....rather than "I'll see if I can get round that"
Now I have one that saves me a shedload of tax.
The reason that I use tax avoidance schemes is that I would otherwise be taxed unfairly (I believe) highly.
[B]If the government wants to stop tax avoidance they should simplify the rules. The same flat rate (somewhwere in the 10-20% range) for everyone. It would be fair, transparent and I suspect that it would raise far more revenue

Yeah too simple maybe, just like putting VED on petrol...

[Osem]

Labour's biggest non-union donation is from PwC – a firm accused of "promoting tax avoidance"

The latest party donation figures show the Labour party's biggest donor, aside from the unions, is the huge accountancy firm slammed by the Public Accounts Committee.

http://www.newstatesman.com/politics...-tax-avoidance

Rather embarrassing news for Labour after a good run at keeping the tax shenanigans of the wealthy in the news. It turns out the largest chunk of money the party received from a non-union donor in October-December last year was from PwC. The accountancy giant gave the party £386,605.

Then there was this:

Labour received £600,000 of advice from PwC to help form tax policy

Transparency International director says the findings present a ‘serious issue about exerting influence at the heart of politics’

http://www.theguardian.com/politics/...tics-influence.

Hmmm....

I'll be very surprised if PwC aren't donating to the Tories as well.They earn enough to make it worthwhile.

[Osem]

Maybe some turkeys do vote for Christmas...

---------- Post added at 13:40 ---------- Previous post was at 13:36 ----------

Having said that, it is very odd that, having made such a fuss about chasing those engaged in pushing the boundaries of tax avoidance, Labour would want to accept anything from a company that a parliamentary committee took such a dim view of. Maybe if they feel so bad about it they'll give the money back...

[heero_yuy]

Hypocracy knows no bounds when politicians are involved.

[denphone]

Originally Posted by heero_yuy

Hypocracy knows no bounds when politicians are involved.

Indeed and of all political colours sadly.