Monday, 17 March 2008

No safe harbour for tax cheats


From last Wednesday's Guardian:
Millionaires claiming residency in Monaco have told the Guardian they plan to circumvent the new rules by abandoning their weekly commute or transferring board meetings to offshore locations.

[...] Keith Luxon, a banker and seven-year Monaco resident, said the change was "completely unjust. It will have a big impact.

"Whether it's here, Jersey, Guernsey or the Isle of Man, the guys will have to change the way they work. The classic example is someone who flies in and out of London 90 days a year for work. Under the new rules he is suddenly a UK resident for tax purposes. Some people are talking about taking this to the European court of human rights."
To defend the fundamental human right to not pay tax, I suppose? While there is probably an element of sensationalism in journalism like this, the fundamental point is clear: there are a small number of people who have both the means and the desire to avoid UK tax despite gaining their income primarily in the UK. The whole tax system loses legitimacy if we cannot share the burden of providing societies' infrastructure equally among those who use it. Bankers could not bank without a system of law and the police to enforce it, without employees educated in schools and universities, or without a transport system to facilitate their movements. I'm probably becoming boring on this topic but it really affronts me that the Monagasque expats and their ilk are allowed to shirk their responsibilities. 90 days is far too long permit people to work in the UK without paying tax: let's call it 30 shall we?

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