Well of course I agree. But he either has no clue what he’s talking about or he’s ignoring the fact that his government is one of the biggest supporters of large corporate tax avoidance there’s ever been. As I explained in a report I wrote for the TUC last May, In December 2010 George Osborne announced the biggest tax loophole ever deliberately introduced for large companies by a UK government when he announced that any UK company moving its treasury function out of the UK to a tax haven would have its tax bill on that treasury operation cut to 5.75%.
The distinction that R. Murphy makes between tax planning (entirely legitimate, morally and legally) and tax avoidance (morally illegitimate and yet still legal) is that tax planning means using the allowances, deductions and reliefs allowed in law as Parliament meant them to be used.
Tax avoidance is using them in ways other than Parliament meant them to be used.
That is Ritchie\’s argument, I\’ve not misrepresented him.
George Osborne announced the biggest tax loophole ever deliberately introduced
So it\’s not tax avoidance. It has been deliberately introduced by Parliament to be used in that manner.
It is, in fact, tax planning and tax compliance to use the allowance exactly as Parliament intended.