You will recall that I\’ve been shouting about how Ritchie\’s estimations of the corporate tax gap are rubbish, yes?
For he takes the headline tax rate and the actually paid tax rate and says that the difference between the two must be the tax gap.
Entirely ignoring that some/part/most/all of this gap will be corporations making use of the allowances specifically put into the law by Pariliament so that corporations will do things that Parliament wants corporations to do.
Finally, finally, Richard agrees:
It is a persistent argument of business that the tax gap on corporate profits (which I have estimated to exceed £10 billion a year in the UK) is not the result of any form of avoidance at all, but simply the use of perfectly acceptable allowances and reliefs. And some of it may be – of course that has to be true.
Sadly, he doesn\’t see fit to give credit to the person who first pointed this out to him: nor is he prepared to change his estimates of \”tax avoidance\” for as he\’s just admitted, some/part/most/all of what he\’s calling tax avoidance is of course, by his own definition, now tax compliance.