MPs are dangerously blurring the line between tax avoidance and evasion February 19, 2015 Never before has tax avoidance – legally arranging your affairs to lower your tax liability, as distinct from the illegal practice of tax evasion – been used as a political weapon in such a high profile way. In the last week, we’ve had it all: smears, claims and counter-claims, and Ed Balls, the man who [...]
Levy on tobacco industry could cost state millions February 16, 2015 A TAX on tobacco manufacturers’ profits could result in significant losses of income for the government, a consultancy has said. “The implementation of a windfall tax is estimated to produce a net loss in tax receipts,” the analysis from Oxford Economics said yesterday. If the tax is implemented at £100m, it is predicted it will lead [...]
Lord Green keeps Chambers of Commerce role as HSBC tax evasion row goes on February 16, 2015 Former HSBC boss Lord Green is keeping his role as a trade adviser to the British Chambers of Commerce (BCC), as the business group backed the embattled ex-government minister. Green was the chief executive and chairman of HSBC while its Swiss private banking arm helped wealthy clients evade taxes. He is now the focus [...]
Institute of Directors labels Google Tax a government about-face February 15, 2015 The Institute of Directors (IoD) has criticised the Diverted Profits Tax, known as the Google Tax, being introduced by the government. The law aims to gain revenue from some profits that multi-national companies register abroad. Firms will be legally obliged to notify HMRC, and pay a 25 per cent tax on identified earnings. Stephen Herring, [...]
Investment tax break hits record as UK companies go for growth February 15, 2015 UK BUSINESSES will invest a record £2.8bn this year under the Annual Investment Allowance, as firms look to grow after years of underinvestment, commercial finance group LDF said yesterday. Introduced in 2008, the Annual Investment Allowance allows businesses making capital investments to claim a deduction of up to £500,000 from their taxable profits. HMRC has [...]
The government wasted £5.1bn last year – and £6m was on unusable earplugs February 15, 2015 Last year, the government apparently wasted £5.1bn on pointless projects and avoidable errors, with the Ministry of Defence being the biggest culprit of all. The department's £3.07bn losses included £4m on inventory for Sea King helicopters no longer in use, and £6m on earplugs found to be “not fit for purpose”. It also [...]
General Election 2015: Ed Miliband promises review of HMRC after HSBC tax avoidance row February 14, 2015 Labour has set its sights on the tax inspector, promising a “root and branch” review of HMRC following criticism of the investigation it made into tax avoidance which came to light from the HSBC Swiss bank leaks. Miliband made the pledge speaking at the Welsh Labour Conference in Swansea as the issue of tax avoidance [...]
HSBC boss Stuart Gulliver memo: “Sometimes we failed to live up to standards expected by society” February 13, 2015 HSBC boss Stuart Gulliver has admitted in a memo to the bank's staff that it failed to live up to expectations, after it was accused of helping thousands of customers of its Swiss private banking arm to evade tax. Reuters reported today that the memo also indicated he had been called to give evidence to "lawmakers". [...]
HSBC bosses Douglas Flint and Lin Homer to face parliament over Swiss tax evasion unit February 12, 2015 HSBC’s chairman will face MPs this month to explain what the bank has done to stop its Swiss unit helping customers to evade taxes. Douglas Flint has been summoned by the Treasury Select Committee, along with HMRC boss Lin Homer. The bank and the taxman have faced a storm of criticism this week on [...]
Lord Fink’s “vanilla” tax avoidance: What does it mean, and how is it different from HSBC’s alleged practices? February 12, 2015 Tory peer Lord Fink has admitted avoiding paying tax while working in Geneva, but says his actions were “vanilla” in nature and that he was not involvement in the allegations currently plaguing the Swiss arm of HSBC. The former hedge fund manager is a client of the bank, which came under fire earlier [...]