Tax avoidance vs tax evasion

[STEINER]

There was a bit in the UK media recently about the entertainer Gary Barlow and his tax affairs. I always thought tax avoidance was a legitimate way to minimise tax liability as opposed to tax evasion, by utilising whatever legal mechanisms or loopholes are available. Surely tax avoidance is prudence?

http://www.theguardian.com/culture/2014/may/12/gary-barlow-tax-row-cameron-obe

 

[DB74]

Just people who can't avail of the schemes doing the usual whinging

 

[Leo]

When you invest £X in a scheme, and then quickly turn around and claim a loss of up to five times £X you likely stray to the wrong side of the avoidance/ evasion line.

The ruling in this case is the schemes were not genuine investments, and so any claim for losses incurred against tax liabilities were not valid under HMRC rules attached to these reliefs. So not quite as serious as serious as deliberate tax evasion, but they will likely have to pay back the reliefs they received.

They invested £5.2M (getting full tax relief on that), then topped up their investment with a £20.8M offshore loan. A month later, their investment reported a £25 loss, which they then wrote off against their tax liabilities.

 

[Conan]

I once heard someone describe the difference between tax evasion and tax avoidance as the same as the difference between rape and seduction.

 

[RainyDay]

There was a bit in the UK media recently about the entertainer Gary Barlow and his tax affairs. I always thought tax avoidance was a legitimate way to minimise tax liability as opposed to tax evasion, by utilising whatever legal mechanisms or loopholes are available. Surely tax avoidance is prudence?

http://www.theguardian.com/culture/2014/may/12/gary-barlow-tax-row-cameron-obe

Doesn't it grate just a little to see Gary on the Children in Need appeal with the plinkity-plink soft piano music and a tear in his eye begging the general public to send in their contributions for charidee to save the poor disabled kids, while public services to those kids are being cut back as a result of reduced tax income?

 

[Purple]

Doesn't it grate just a little to see Gary on the Children in Need appeal with the plinkity-plink soft piano music and a tear in his eye begging the general public to send in their contributions for charidee to save the poor disabled kids, while public services to those kids are being cut back as a result of reduced tax income?

Maybe the reduced tax income is due to over taxation?