I will be on the BBC in about an hours time debating the current Jihad by the Conservative led Government against what they call “tax avoidance”. What, you may ask, is tax avoidance? Well, it appears it now is being stretched to include those who employ accountants to legally minimise the tax they pay to the State. Indeed it now is being claimed that it is “immoral” to pay cash in hand to tradesmen since that too avoids tax. On this logic, are ISA’s also immoral? This is a lunatic argument that is being proposed by Conservative Mark Gauke and irony of irony can you guess what his wife does for a living? Yes, she’s a tax avoidance lawyer!
The way to deal with this issue is to simplify our incredibly complex tax laws. People will naturally seek to avoid paying tax if they can – and a good thing too so long as done legally. But if Government wants to increase tax yield then introduce a flat tax and enforce it.