How We Morally Justify Tax Avoidance

Secret denunciations against anyone who will c...

Secret denunciations against anyone who will conceal favors and services or will collude to hide the true revenue from them. (Photo credit: Wikipedia)

Morality

Morality (Photo credit: tdietmut)

CASH IN HAND – 

Has been around for longer than l can remember it goes back to before the use of currency as we know it came into being! So long ago a number of people using goods and chattels provided us with a way to barter, such as a handyman provides a service and gets paid by receiving payment in kind!

I worked with a man called Steve Adams [RIP] he was a craftsman plumber by trade and he received payment in different forms, from a bottle of whiskey, step-ladder and even a car! These people from local politicians through to the man or woman in the street were paid this way,for many a year. it was simply called ” Payment or Benefit in Kind

This like so many ways to not pay tax sooner rather than later were to become know as ” Tax Avoidance” and a rule in the 80’s was coined as ” Benefit In Kind ” for using a vehicle in business or receiving a so-called benefit or as it came to be known a ” Bung” but was this really tax avoidance.

The fact that Cameron came out with the statement that they would clamp down on tax avoidance schemes led some to believe he meant the businesses and banks! Of course the more cynical of us and l am one realised it would mean the ordinary working man or woman.

The fact that the person put in charge has been in charge of showing people how to avoid tax in the past! Does this make him the right person to morally judge us? This extract thanks to Wikipedia shows he had expertise in ” Tax and Structuring ” tells us he was advising people on ” Tax Avoidance Schemes”

Professional Career

He was a researcher to the Conservative MP for Milton Keynes South West Barry Legg in 1993. He worked as a trainee solicitor with Richards Butler from 1995, being admitted as asolicitor in 1997. From 1999 to 2005, he was a solicitor in the financial services group atMacFarlane[1], a corporate law firm with expertise in “tax and structuring”.

David Gauke didn’t find many supporters for his view that paying tradesmen cash in hand was “immoral” yesterday. Dave, Nick, Ed Miliband and Boris all lined up to say they’ve done it before.  

We’ve got a feature by Dan Hodgescalling the affair “another attack on the middle classes” ; he warns politicians about the hazards of moralising on tax. 

So what is morally justified in this world of financial jiggery-pokery http://www.thefreedictionary.com/jiggery-pokery who can give us advice on what we should consider is tax avoidance or just a way to avoid paying our ” just desserts”

Well my answer is that as long as you provide a good service at the right price and submit your tax forms to the appropriate authorities on time, you do the right thing! By using the rules and regulations set down by the HMRC and keeping within them you can utilise legitimate tax avoidance by not paying more than you really have to and keeping yourself, family and tax man firmly on the other side of your front door. As once they have a foothold they will not let go until they drain the life blood from your bank account and provide it to the ” True Avoider’s of this World” the people who made the rules up in the first place!

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