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Tax Avoidance
The TUC have reported that tax avoidance by both wealthy individuals and corporations is costing the exchequer £25bn every year; with individuals leagally avoiding £13bn and corporations avoiding £12bn.
The TUC have called for a "general anti-avoidance principle" to make it easier to tax both wealthy individuals and corporations, which critics believe would lead to people and firms moving elsewhere. The report's author, Richard Murphy, however beleives that the threat of people moving is not a real one, and that it is the wealthy who are getting the best from our tax system.
Some of the richest residents in the UK are registered as non-domicile which allows them to avoid paying tax on some earnings from outside the UK.
There are good reason why companies may be paying below the 30% threshold, such as tax relief on investments into research and development.
Tags:
tax, finance, investment, government
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