BBC - How the West invited China to eat its lunch

Working in a deprived, yet enriched area brought me into contact with hundreds of Asian families. It was noticeable how many fathers were on Disability Benefits or unemployed, yet were too busy to attend parent’s evenings (driving a taxi or working in a takeaway according to their kids). Money can be virtually moved home through a Hawala system without a paper trail.
No doubt other sections of the demographic have a similar lifestyle, but I didn’t see many white faces at work.
Sounds like Birmingham
 
Working in a deprived, yet enriched area brought me into contact with hundreds of Asian families. It was noticeable how many fathers were on Disability Benefits or unemployed, yet were too busy to attend parent’s evenings (driving a taxi or working in a takeaway according to their kids). Money can be virtually moved home through a Hawala system without a paper trail.
No doubt other sections of the demographic have a similar lifestyle, but I didn’t see many white faces at work.
Well if you have facts that individuals are working while on benefits, there is a hotline you can ring.

I assume you have facts?
 
Very simple explanation of the system on google, they take small fee for moving cash into mostly expat accounts.
That’s not facts that people you see in the street are doing though is it?
 
So whose to say they aren't, you?

The generations who migrated from India and Pakistan have always done it at home and what changes in the UK?
Without evidence, it would be daft to make allegations

Are you daft?
 

4(T)

LE
That’s not facts that people you see in the street are doing though is it?


Many of UK's religious and/or ethnic "communities" have internal banking and international money transfer systems that are effectively outside the reach of government and HMRC.

These are often networked to a very low level, so - yes - the little man in the street is often a part of that system, as either customer or conduit.
 
Many of UK's religious and/or ethnic "communities" have internal banking and international money transfer systems that are effectively outside the reach of government and HMRC.

These are often networked to a very low level, so - yes - the little man in the street is often a part of that system, as either customer or conduit.
There are a myriad of ways of transferring money anywhere in the world. It doesn’t mean that that money wasn’t taxed when it was earned.
 

FORMER_FYRDMAN

LE
Book Reviewer
Is that income that is taxed at source or not. The vast majority of people working in the UK are on PAYE and are unable to avoid paying tax on what they earn.

If people are speculating on gold, that’s a choice for them. It doesn’t mean they haven’t paid tax on the money they used to buy the gold.

98% of my company's revenues since it was formed have come from foreign earnings. I could Offshore if I chose to but that's my choice and no- one else's - the UK government delivers no value to my operations. You castigate Rees-Mogg for not wanting to share his profits but I don't see you demanding that the tax payer shares his risk.

In terms of earnings, no-one resident in the UK will is able to avoid income tax or dividend tax regardless of where the entity paying them is based.
 

4(T)

LE
There are a myriad of ways of transferring money anywhere in the world. It doesn’t mean that that money wasn’t taxed when it was earned.


These systems go far beyond simply simple cash transfer. They are more akin to shadow economies wherein the (actual or deemed) cash flows are outside the national tax system.
 
98% of my company's revenues since it was formed have come from foreign earnings. I could Offshore if I chose to but that's my choice and no- one else's - the UK government delivers no value to my operations. You castigate Rees-Mogg for not wanting to share his profits but I don't see you demanding that the tax payer shares his risk.

In terms of earnings, no-one resident in the UK will is able to avoid income tax or dividend tax regardless of where the entity paying them is based.
And yet presumably, you live in the UK. You use it’s roads and possibly the railway system. Someone cleans the streets and deals with sewerage etc. We have a comprehensive health system and there are a large number of activities performed by central government and local government officials in the interests of pubic safety. Then of course there’s the national defence infrastructure that protects us all from foreign domination.

I’m not saying that Rees Mogg should not take risks and enjoy the profits that he makes from doing so. Nor am I saying that the rest of us should share his risk. I am saying that he should pay UK taxes on all of his income because like most of us, he lives in the UK and enjoys the same benefits of living in the UK that the rest of us do.

In effect, he’s at least partially freeloading and for someone who likes to dress and appear as English as an Englishman can, while he’s not paying UK taxes on all his income and he’s not acting unlawfully, he is being quite selfish especially given his stance on UK sovereignty.

That sovereignty comes at a price. He’s dodging his fair share.

He’s not a patriot.
 

FORMER_FYRDMAN

LE
Book Reviewer
And yet presumably, you live in the UK. You use it’s roads and possibly the railway system. Someone cleans the streets and deals with sewerage etc. We have a comprehensive health system and there are a large number of activities performed by central government and local government officials in the interests of pubic safety. Then of course there’s the national defence infrastructure that protects us all from foreign domination.

I’m not saying that Rees Mogg should not take risks and enjoy the profits that he makes from doing so. Nor am I saying that the rest of us should share his risk. I am saying that he should pay UK taxes on all of his income because like most of us, he lives in the UK and enjoys the same benefits of living in the UK that the rest of us do.

In effect, he’s at least partially freeloading and for someone who likes to dress and appear as English as an Englishman can, while he’s not paying UK taxes on all his income and he’s not acting unlawfully, he is being quite selfish especially given his stance on UK sovereignty.

That sovereignty comes at a price. He’s dodging his fair share.

He’s not a patriot.

He will pay tax on his income which is an entirely different matter from the obligations of his company. As you are fully aware, his company is an entity in its own right (and HMRC will hammer you if you blur the lines) and the company officials have a fiduciary responsibility to maximise earnings and minimise outgoings.

If you want to talk about financial scandal, let's talk about public sector waste.
 
He will pay tax on his income which is an entirely different matter from the obligations of his company. As you are fully aware, his company is an entity in its own right (and HMRC will hammer you if you blur the lines) and the company officials have a fiduciary responsibility to maximise earnings and minimise outgoings.

If you want to talk about financial scandal, let's talk about public sector waste.
He’s getting substantial dividends from his company every year which he chooses to not subject to UK taxes by using a tax haven to avoid them.

I’m not a fan of public sector waste. Where it’s proven to exist, it can be stamped out. Unfortunately, Mr Rees Mogg can’t be compelled to pay tax on his substantial earnings from his cayman based company.
 

FORMER_FYRDMAN

LE
Book Reviewer
He’s getting substantial dividends from his company every year which he chooses to not subject to UK taxes by using a tax haven to avoid them.

I’m not a fan of public sector waste. Where it’s proven to exist, it can be stamped out. Unfortunately, Mr Rees Mogg can’t be compelled to pay tax on his substantial earnings from his cayman based company.

How do you believe that he repatriates those funds without paying tax on them?
 
”and the company officials have a fiduciary responsibility to maximise earnings and minimise outgoings.”

No such fiduciary obligation exists. Of course everybody wants to maximise profits but there isn’t a legal requirement.

And this is not about company profits but about Mr Rees Mogg paying taxes on his earnings from this company which he doesn’t by having it based in a tax haven.
 
How do you believe that he repatriates those funds without paying tax on them?
If I knew that, it would probably be because I’m his accountant but I’m not an accountant or indeed qualified in any way to answer that.
 

FORMER_FYRDMAN

LE
Book Reviewer
No such fiduciary obligation exists. Of course everybody wants to maximise profits but there isn’t a legal requirement.

And this is not about company profits but about Mr Rees Mogg paying taxes on his earnings from this company which he doesn’t by having it based in a tax haven.

I think you'll find that company officers have a fiduciary duty to act in the best interests of the company which, I would argue, includes optimising returns.

Again, how do you believe that a UK resident can legally avoid paying tax on foreign earnings? You may be able to accrue abroad but, as soon as you start repatriating the money, you incur liability, and without the allowances.
 

FORMER_FYRDMAN

LE
Book Reviewer
If I knew that, it would probably be because I’m his accountant but I’m not an accountant or indeed qualified in any way to answer that.

The quick answer is that, short of being non-domiciled, he can't personally avoid paying UK tax.
 
I think you'll find that company officers have a fiduciary duty to act in the best interests of the company which, I would argue, includes optimising returns.

Again, how do you believe that a UK resident can legally avoid paying tax on foreign earnings? You may be able to accrue abroad but, as soon as you start repatriating the money, you incur liability, and without the allowances.
Of course company officials will do everything they can to increase profits but they are not legally obliged to do so. The only legal duty is to not act unlawfully in conducting the business of the company.

Again I don’t know but wasn’t there a report in the news recently about a significant company loan that Mr Rees Mogg was given by his company?

Oh look!

 

New Posts

Latest Threads

Top