Didn\’t click with me yesterday but this from Polly\’s column:
The area between tax dodging and reasonable offsetting – of pension contributions, research and development, preventing double taxation, new investment and legitimate reliefs – is the thick fog where lawyers and accountants make their millions. Between the spirit of tax law and its practice, fortunes are made.
In discussing Richard Murphy\’s calculations of the tax gap (which is the basis of the TUC\’s numbers on such) I said:
Now let us agree that people do indeed order their affairs so as to lower their tax due. Leave aside all those legal rights about their being allowed to do that. Even then there’s still a logical error here.
For Parliament deliberately and specifically enacts into law provisions which are there to reduce the tax paid by corporations below the headline rate.
First year allowances, Capital allowances, pension contribution allowances, intangible assets allowances, research and development credits and so on. I wouldn’t be at all surprised to find that there are others, perhaps training tax credits, child care even….
Now as far as I\’m aware I\’m the only person who has made that critique of Murphy\’s numbers (although that may be more a reflection of my not reading enough of other writers rather than anything else).
Might the message actually be getting through?