Archive for June 22nd 2012

Avoidance schemes – a morally taxing issue

Tax evasion is illegal. It is deliberately not paying the tax that is due. Tax avoidance, however controversial, is not illegal. It is paying the least amount of tax possible, whilst staying within the law. Average Joe, if offered a completely legal way of paying less tax, would likely jump at the chance. Many of us use ISAs to avoid paying tax on our savings. Moreover, ‘responsible tax planning’ is actively distinguished by the treasury and will not be affected by proposed new legislation. But where is the line to be drawn between this, and millionaires paying as little as 1% tax?