21307003
Description
Mind Map by Lisa Wakefield, updated more than 1 year ago
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Created by Lisa Wakefield
about 4 years ago
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Ethics in taxation
- Definitions
- Evasion - any illegal activity in
which a person or entity
deliberately avoids paying a
true tax liability.
- Avoidance
- UK Definition - a
course of action
designed to conflict
with or defeat the
evident intention of
Parliament
- Global Definition -
any legal method of
reducing the tax
burden.
- UK Definition - a
course of action
designed to conflict
with or defeat the
evident intention of
Parliament
- Tax Planning - Tax planning
is legal. Taxpayers are
entitled to enter into
transactions that reduce tax
or to take interpretations of
legislation that HMRC may
not agree with.
- Tax Mitigation - Tax mitigation, which
is to reduce one's tax in a manner
that not only complies with the letter
of the law but that is consistent with
the policy behind the legislation.
- Evasion - any illegal activity in
which a person or entity
deliberately avoids paying a
true tax liability.
- Tax planning doesn't remove the level playing field
- Tax planning is legal
- Key cases - CIR v Duke of Westminster 1935 “Every man is
entitled to order his affairs…so that the tax attaching is less
than it otherwise would be.” CIR v Pullman Motor Services
1929“No man in the country is under the smallest obligation,
moral or other, so to arrange his legal relations to his business
or property as to enable the Inland Revenue to put the largest
possible shovel in his stores
- Canon of equality states
that the burden of taxation
must be distributed equally
or equitably among the
taxpayers.
- What is determined as
equitable. The
sacrifices of all
taxpayers become
equal.
- JK Rowlings
still has £1M
a week to live
on
- JK Rowlings
still has £1M
a week to live
on
- What is determined as
equitable. The
sacrifices of all
taxpayers become
equal.
- Economic impact
- Attract investment and
corporate HQ transfer
- Tax planning is legal
- Tax planning does remove the level playing field
- Tax planning advice
is only available for
the wealthy. Duke of
Westminster
- Public opinion also impacts
decisons (Lewis Hamilton's
jet)
- Sentiment of "ok for me, but not for him"
- Misunderstanding of the
level of tax paid by each
category
- Misunderstanding of the
level of tax paid by each
category
- Access needed for all. Jack
Monroe approach to
sharing
- Large company and high
wealth individuals have an
obligation to pay
- Duty to
maximise
shareholder
wealth
- Culture within the industries
- Duty to
maximise
shareholder
wealth
- Those that can avoid will avoid
- Attract investment and corporate HQs
- Tax planning advice
is only available for
the wealthy. Duke of
Westminster
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