Tax avoidance is working around the rules of the tax system in order to pay less tax than Parliament ever intended – so operating within the letter, but not the spirit of the law. Tax avoiders often enter complicated, artificial ‘schemes’ that have no real financial purpose, other than to avoid tax. You may have heard about high-profile users of these sorts of scheme in the news. Some of these schemes are sold to potential users by a promoter – that’s why we can say that they are ‘marketed’. This next set of questions focuses on this type of marketed tax avoidance by individuals rather than businesses.
So, stuff like Jimmy Carr then. And Ritchie says:
HMRC have published the results of a survey that they have undertaken on people’s attitudes towards tax avoidance this morning.
But Ritchie’s definition of tax avoidance is rather different from everyone else’s definition of marketed tax avoidance scheme, isn’t it? For example, I think I understood him correctly as saying that Amazon selling from warehouses is the tax avoidance of business rates.