Category Archives: UK taxation
Tax avoidance or Tax evasion?
Jimmy Carr
Take That
Comedian Jimmy Carr has apologised for using a legal tax avoidance scheme which enabled him to pay as little as 1% tax on his earnings. Further revelations that Take That stars Gary Barlow, Howard Donald, Mark Owen and their manager Jonathan Wild ploughed £26million into a partnership which enables them to cut their tax liability dramatically.
People have been trending this issue relentlessly on twitter, but let’s be honest who wants to pay too much tax(if any) the common denominator is they have all taken expert financial advice.
Tax evasion Definition
Unlawful attempt to minimise tax liability through fraudulent techniques to circumvent or frustrate tax laws, such as deliberate under-statement of taxable income or wilful non-payment of due taxes.
examples
The tax-man loses out again.
- Being a permanent resident in a country but not declaring income to the tax authorities
- Not declaring income from property letting
- Not declaring gross paid interest on offshore accounts
- Wilful refusal to pay tax
- Pension schemes are legitimate and avoid tax
- The legitimate use of ‘loopholes’ created by poorly drafted legislation or statutory instruments
- The legitimate use of offshore trusts to hold assets
- Phasing the sale of assets over a period of time long enough to effect maximum exemption from capital gains tax(CGT)
- Pension schemes are legitimate ways of mitigating taxation, if you are or intending to be a non-resident then a QROPS pension transfer may offer you even greater tax efficiency.
- Saving either with lump sums or regular savings into an offshore insurance bond can mitigate taxation when drawing income.
- Review your existing last will and testament to make sure it provides relative succession planning to your circumstances.
savingsplanuae
savingsplanuae 