How to make taxation "fair"?

motorbiking said:
You could say the same for law, its to keep lawyers employed. I suspect the rules are rules on top of rules, with unintended consequences, resulting in changes to rules.

Capping pensions probably made sense to avoid lost tax revenue, but the consequences will be more people with their hand out for state benefits when they retire.

2nd property tax, impacted the housing market as those with more than 1 house were stuck in their home due to the extra fees.

Increases in corporation tax results in HQs moving elsewhere, increases in income tax results in off-shore earning. EU tax harmonisation allows rich countries to "steel" tax from poor countries.

One countries tax incentive is another's tax haven.
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That's something else I watched a tv prog on a few years back, all the people/teams that have their fingers in the pie from start to finish of the legal process.
 
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diy_fun_uk said:
The would-be conspiracy theorist in me wonders if the tax system is intentionally complex, thus enabling 'the rich' to finds ways to avoid/evade paying as much as they should. I was watching a tv prog last year and a UK billionaire stated he pays more than he probably has to. In short, if he so desired, his money managers could find ways for him to pay less.
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this exactly.

it's so complicated that only the wealthy can afford to understand and take advantage of it.

the rules need to be simpler, not more complicated.

the rules are made with assistance from the big 4 accounting companies (permanent staff assigned just to taxation rule making). Why does anybody think that would be the case if it wasn't for a specific purpose.
 
Because there is good business in advising firms on tax and treasury policy. Its how a coffee chain works out that by applying an intellectual property royalty to its subsidiaries, it can declare some subsidiaries as loss making, despite billions of sales of high margin product. But the problem for that chain, is that it told its investors a different story. That being that these so called loss making subsidiaries were in fact "very profitable". Hence they were publicly attacked for "fiddling" taxes. In fact what they were doing was entirely legal and very common.
 
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@Mottie from the other thread (bizarrely locked thread). Amazon wouldn't qualify as there is a total exemption cap.
www.gov.uk

Business rates relief

Check if you can get a reduction in your business rates bill with business rates relief and find out how to apply.
www.gov.uk www.gov.uk
 
motorbiking said:
Because there is good business in advising firms on tax and treasury policy. Its how a coffee chain works out that by applying an intellectual property royalty to its subsidiaries, it can declare some subsidiaries as loss making, despite billions of sales of high margin product. But the problem for that chain, is that it told its investors a different story. That being that these so called loss making subsidiaries were in fact "very profitable". Hence they were publicly attacked for "fiddling" taxes. In fact what they were doing was entirely legal and very common.
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Now tell us how it is fair for all.
 
Are the rules secret? Are they applied to some and not others based on status? Am I somehow able to take advantage of them in a way you can't?

If you can read, you can follow them. If you have google you can find out how to managed your tax liability efficiently.

Saying it's not fair is like complaining that Tesco has better buying power than your local butcher.
 
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motorbiking said:
@Mottie from the other thread (bizarrely locked thread). Amazon wouldn't qualify as there is a total exemption cap.
www.gov.uk

Business rates relief

Check if you can get a reduction in your business rates bill with business rates relief and find out how to apply.
www.gov.uk www.gov.uk
Click to expand...
Ah, right. I see that now. This is why I dont pay any:

Small business rate relief​

You can get small business rate relief if:
  • your property’s rateable value is less than £15,000
  • your business only uses one property - you may still be able to get relief if you use more
You will not pay business rates on a property with a rateable value of £12,000 or less.
 
motorbiking said:
Are the rules secret? Are they applied to some and not others based on status? Am I somehow able to take advantage of them in a way you can't?

If you can read, you can follow them. If you have google you can find out how to managed your tax liability efficiently.

Saying it's not fair is like complaining that Tesco has better buying power than your local butcher.
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you missed the very point you made, but I'm not surprised.

Because there is good business in advising firms on tax and treasury policy


 Think anybody can Google as effectively as these specialists ?
 
Is it unfair that Mottie can service his car because he is an expert and I have to go a garage? I can google how to do it, but I will never be as good as someone who is a specialist.
 
motorbiking said:
.

Capping pensions probably made sense to avoid lost tax revenue, but the consequences will be more people with their hand out for state benefits when they retire.
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You have to be fairly hard up to get state benefits. Are you saying that there is a cap pushing people below that? What is this cap?

Obiously not the Lifetime Allowance, which is over a million.
 
motorbiking said:
Is it unfair that Mottie can service his car because he is an expert and I have to go a garage? I can google how to do it, but I will never be as good as someone who is a specialist.
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Would it be unfair if plumbers paid a basic rate of 20% and car mechanics paid a basic rate of 40%?

Would it be unfair if a person receiving £50,000 in wages paid twice as much tax as a person receiving £50,000 in dividends?

Or three times as much tax as a person receiving £50,000 in capital gains?
 
JohnD said:
Would it be unfair if plumbers paid a basic rate of 20% and car mechanics paid a basic rate of 40%?

Would it be unfair if a person receiving £50,000 in wages paid twice as much tax as a person receiving £50,000 in dividends?

Or three times as much tax as a person receiving £50,000 in capital gains?
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But they can google how to get the best tax advantages, just like those big firms and wealthy people do.
 
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