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Do you know the jargon for different types of tax evasion?
A simple tax plan is perfectly legal. It is fair not to pay more taxes than necessary.
Active tax avoidance, on the other hand, is someone who, while complying with the letter of the law,subvert its purpose”.
Outright tax evasion, when someone deliberately breaks the rules, is the most serious. Although this is a crime, it is relatively rare to go to court.that’s all 336 people Billed for the most recent year.
These 336 people ranged from “taxi drivers who deliberately do not declare a £10 cash payment, to drug dealers who hide cash under their mattresses, to the ultra-rich who deliberately hide money abroad. , could be anyone,” said the Rebel Accountant.
But in reality, evasion is becoming “more complex, more sophisticated, more international, more digital.” According to HMRCLast year a UK resident was revealed £570 billion held in tax havensofficials admitted they could not even estimate how much of that wealth was undeclared and therefore tax evaded.
When it comes to accountants and lawyers who help avoiders, even fewer of them face justice. 8 cases He has been indicted for the past two years and was revealed this month.
Rebels are not surprised by this. “Accountants and lawyers are not going to advise their clients to do anything illegal, at least nothing legal,” he says.
But this gets to the crux of the problem he stresses: they don’t have to. There are enough legal ways for wealthy people to avoid taxes without breaking the law.
All sorts of companies are involved in a duel with HMRC, he said. “Work with one or two of his specialists begins. ‘This is a smart way to avoid the stamp duty land tax.’ We are advising our customers on how to pay less tax in a variety of ways.”
He uses the example of F1 driver Lewis Hamilton, whose financial situation was exposed in a 2017 Paradise leak. His VAT of £3.3m was legally avoided by setting up a series of consolidated holding companies in tax havens.
“Now it’s being done by people at the top of the profession. Our tax partners are making $1 million a year and advising another millionaire on how to pay less in taxes. We How is our tax system so cumbersome that it can do that?”
And if schemes like this don’t work, the people who set them up don’t really care. “Accountants always win in situations like this. They would say, ‘Maybe it doesn’t work. If it doesn’t work, it’s not our fault.'” They would still be receiving commissions. ”
