But perhaps most important is the fact that a limited liability company gives its shareholders in whose interest Roger Carr says it must be run the most phenomenal economic privilege: they cannot be sued for the debts the company incurs if all goes wrong even though they get all the benefit if things go right. That’s an astonishing privilege. It is not a right. I stress, it is a privilege – and one that is granted by parliament on behalf of the people of the UK.
The privilege carries with it at least two implicit responsibilities. The first is to account for how the privilege is used – which means putting full and proper accounts on public record so we can know exactly what our companies are up to. The second obligation is to pay for the privilege – and that means complying fully and willingly with the tax (and other) laws passed by the UK parliament that creates them using exactly the same authority that they use to grant the privilege of limited legal liability.
And given that, by definition, tax \”avoiders\” do obey the law as written by Parliament and interpreted by the courts, then tax avoiders are indeed living up to their part of the contract implicit in their grant of limited liability.
Makes you rather wonder why he\’s whining really.