There is an alternative explanation here

Labour have accused the Treasury of failing to fully tackle tax avoidance as it claimed to have identified a £2.6bn black hole created by downgraded revenue forecasts.

John McDonnell, the shadow chancellor, said that information buried in the small print of last month’s Office for Budget Responsibility report showed that three tax avoidance measures were now expected to raise significantly less than when they were first announced.

Which is that there’s less tax avoidance going on than some think….

16 comments on “There is an alternative explanation here

  1. … or that profitable businesses and those with significant financial assets are moving themselves and their money well away from the rapacious UK government.

  2. “three tax avoidance measures were now expected to raise significantly less than when they were first announced.”

    Every single tax avoidance measure ever implemented has raised less tax than when first announced.

    The vast majority of government spending plans end up costing more than when first announced.

    Therein lies one of the country’s problems.

  3. “As we know from here, tax avoidance is your patriotic duty.”

    Indeed it is.

    If 650 MPs and their advisers, umpteen parliamentary draughtsman, Lord know how many members of the HoL and their advisers and 1000’s of civil servants and their industry advisers can’t spot loop holes then it isn’t up to the likes of us to second guess them.

  4. “DBC Reed

    As we know from here, tax avoidance is your patriotic duty.”

    Why not set a good example and pay more tax than the law demands.

    Perhaps you already do and can list all the extra tax you pay than you need to?

    Or maybe you’re full of sanctimonious shit?

  5. I’ve occasionally paid too much tax (by accident), the HMRC sent it back to me. It is very very difficult to get the revenue to accept a known overpayment and keep it. You have to systematically falsify your returns to make it look like you really do owe the extra amount. Which is tax fraud.

  6. Cynic,

    I always read those reports that claim 80% would pay high taxes if it went to the NHS as 80% think everyone else should pay higher taxes towards the NHS.

  7. Everybody always thinks ‘the rich’ should pay higher taxes, so they (the non rich) can have better funded public services, the rich being defined as ‘someone on 1.5 times the income of the respondent’.

    This being because people realise they might get a promotion, or a better job one day, so as they don’t consider that if they do increase their income a bit that ‘they’ should have to pay higher taxes, so pick a figure suitably above their current income to ensure any higher taxes are very unlikely to ever affect them.

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