Thursday, November 11, 2010

£120 billion tax avoidance?

Came across a fascinating article in Monday’s Guardian (thanks to good friend Iain) by George Monbiot (I’ve previously read his excellent book “HEAT – how can we stop the planet burning”). He reckons it’s arguable that the UK government does NOT have a spending crisis; it has a tax avoidance crisis!
Official accounts suggest that the tax gap amounts to £42bn.
Richard Murphy of Tax Research has demonstrated that this figure cannot be correct, as it contradicts other government statistics. He estimates that avoidance now amounts to £25bn a year, evasion to £70bn, and outstanding debts to the tax service to £28bn: a total of more than £120bn. That's roughly three-quarters of the budget deficit!
Just remember this when Public Sector redundancy figures hit the roof over the coming months!
Photo: nothing to do with tax avoidance – just a pic I took on the Windmill Arts Trail that I thought looked vaguely appropriate.

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