Tax Avoidance – Time To Name And Shame?
Much has been made over recent months about aggressive tax avoidance schemes and the types of companies and individuals who enter into them. As the media has seemingly started to try to ‘name and shame’ those promoting the scheme, as well as some of their higher profile participators (such as Jimmy Carr), is the next step to publicise other individuals and companies who become involved in such strategies? There seems to be a suggestion that those entering into tax avoidance schemes are somehow immoral. But is this a fair assumption to make? Consider the generation of people who have never worked and have milked the welfare system for every penny. Is it fair to name and shame those who have made their money, contributed to the country’s coffers and who want to keep some money back for themselves?
It is widely reported that HM Revenue and Customs (HMRC) loses out on £5billion of revenue a year as a result of tax avoidance schemes and the exploitation of loopholes. Despite efforts to try to stem the flow of such schemes, with specialist anti-avoidance teams in place across the UK, there is no doubt the ’boutique’ firms are still peddling their wares.
The House of Commons Public Accounts Committee has recently reported that HMRC is failing when dealing with the ’boutique’ tax practices in more ways than one. Inefficiency within HMRC when dealing with such matters means that it can take a long time before a scheme can be closed. As such, scheme promoters will use this as leverage when selling schemes to their clients. For the taxpayer, they are sold a scheme on the basis that if it works then they will not pay tax at all. If it fails, then they have delayed paying the tax.
For companies and individuals, this is extremely tempting when it comes to making the choice between making payment to HMRC as required or retaining the funds (even if temporarily) for themselves. Cash flow has become prevalent as the economy continues to struggle.
The committee advised that there needs to be more of a deterrent, for the firms selling the schemes and those entering into them. One suggestion is that the scheme providers and participators should be publicised on a list or ‘named and shamed’. However, there is a strong argument that this is contrary to the rights of the individuals involved.
As well as this, it would be difficult to judge which schemes should be listed. There is a big grey area between normal, run of the mill tax mitigation planning and the aggressive tax schemes which are under fire. Mistakes could be made which could ruin the reputation of those perceived to be involved in ‘aggressive’ tax planning as part of a name and shame campaign. This grey area, whereby people seek to plan for their taxes within the realms and intention of tax legislation, would need to be protected.
Mandy Jones is a highly experienced specialist when it comes to tax planning and so is well placed to offer advice for the likes of taxrebate.co.uk.
Categories: Federal Tax, Income Tax, State Tax, Tax Evasion, Tax Law Tags: finance, money, tax, tax rebate, taxes
Tax Software- How To Make The Right Choice
Computing tax is not anyone’s idea of a favorite pastime. It is one of those irritating tasks you have to get done with. No matter how much one despises it, it is crucial to understand the amount of tax an individual owes as it can significantly help him keep his finances in line.
It happens a lot of times that people believe they are paying the right amount of tax until the day comes when they find IRS at their doorstep. This is the perfect depiction of one’s worst nightmares. Thankfully, this is where tax software steps in.
Technology has influenced every single area of our life and with time-effective solutions like tax software, individuals can eliminate chances of making mistakes. Accuracy and convenience are two perks tax software has established. In addition, such savvy software has made it possible to complete an impossibly large job in an unbelievably small time slot.
With competent tax software, anyone can now have their finances in order. No longer do you need the services of a bookkeeper as tax software helps you ensure that your finances are right on track.
When it comes to tax software, such a huge assortment of options are available that one is spoilt for options. It is, therefore, mandatory that one chooses the right tax software as it can be the difference between starting off on the right foot and rubbing a hole in your wallet. Some tips to help you make well-informed decisions are outlined below:
- The ideal venue to initiate your search for tax software is none other than the internet.
- Opt for a website where you are offered a variety of tax software to meet your needs. This will help you decide on one that effectively caters to all your requirements.
- Your choice should be a website offering downloadable versions of the software so that you do not have to go through a lot of hassle to get it.
- Whatever software you download, make sure it is in accordance with the latest tax laws as they change often.
- Always download the latest version to make sure your computation is always right.
- Try to find a website that specializes in deductions. This is advised because you are most likely to save more money using their software.
- It is of paramount importance to ensure that the tax software you download is legitimate. A telltale sign is the availability of software on multiple websites.
- Reviews or comments about tax software can be the best way to judge whether or not it is good enough. Find what others have to say about it and don’t believe anything that’s too good to be true.
- Comparison shopping cannot be emphasized enough. If you are purchasing tax software online, take time to find out if there are other websites offering it at a more reasonable price. This is important so that you aren’t sweet-talked into purchasing something that’s not worth it.
Bottom-line, get your tax software today and file your taxes more easily than ever before.
Featured images:
- License: Image author owned
Mark is a tax consultant and audit specialist for opening Offshore Bank accounts for international companies in several offshore jurisdictions.
Categories: Federal Tax, Income Tax, State Tax Tags: accounting, bank, smal business, tax
Organizing Your Taxes For 2012
We all love the chance to start a new year with new aspirations going forward. Something about bringing in a New Year when really nothing has changed but the calendar dates. Some things are finalized or closed out and others are opened, as a company who completes the annual business year on the calendar date of 12-31-12. The entire year is reported for income, expenses and items that are amortized, purchased, employee expenditures the whole ball of wax is on the line when the tax year closes. Depending on the scale of your income and expenses you will likely be looking for help to do this. Sometimes you want to make a change of who you lean on to aid you with this important and complex process.
The cataclysmic end of the world did not come as expected by some when the Mayan clock, calendar completed the cycle in December. Some where all prepared they thought to face the three day black-out or whatever other imaginary event they presumed was forthcoming. It all seemed like a bunch of bunk to many, really the Mayan calendar was the visionary group of folks who failed to plan the growth of their society had a handle on the long-term demise of the world as we know it.
Some folks will tell you that the year 2012 was a turning point if not of the obvious Fourth of July type of stature with the big bang and the explosions, fires, hurricanes and other signs of nature. The people some corners believe the turning point was more subtle. That the turn from the Internet era to the era of coming wisdom. Those people that can jump on this wisdom will separate themselves just as those did that adapted to the Information Age.
Navigate the Necessary Details Plan for Success
The best team in the business is easy to pick out if you look at the track records. The importance of getting the right team together when you have a big job to accomplish is very important. The business of getting your taxes organized for your business or personal is big time stuff. You cannot just gloss over the details and turn your forms in in the same careless manner you turned in your homework in high school. The stakes are so much higher; it involves money and also the penalties associated making errors are ominous.
Many people noticed the discrepancies tagged to the Enron team in the early 2000 time line. The Ken Lay and Jeff Stilling leadership team had some very creative approaches to making the company look good. The way in which they played the wall street brokers like a fiddle was clearly noted. It turned into a huge mess and we can touch on some of the gory details a bit later in this piece; the point is in integrity and philosophy.
Tax attorneys run a tightrope mentality for the clients they present to the Internal Revenue Service. No stone is left unturned and the details are closely calculated. Obviously, the Information Age is part of the puzzle for handling your filings with expediency and accuracy. This will keep your group out of hot water and if entitled you will receive your tax refund earlier than you had expected. Consistent performance over the years has builds up a very prominent client base for many tax attorneys. When searching for a tax attorney you should do it mostly by referral as they probably have do a very good job and have a broad client base if you are hearing about them.
Goofy Mistakes Costly With IRS
It is true, just because you made some goofy or silly mistake more like an oversight, it will create a Red Flag with an agent. Some of the bigger mistakes may not be malicious but they will be flagged by the agent no doubt. Make a choice that has some legs; when it comes to a business process like filing your corporate or business taxes; use a team that can go to the hole and close the deal for you. It is clearly time to make the right move.
Featured images:
- License: Creative Commons image source
By Rodney Hall
Rodney enjoys building content for Mommy Content and working with clients like Michelle Turpin PC Tax Attorneys.
Categories: Federal Tax, Income Tax, State Tax Tags: tax, tax advice, tax attorney, tax preparation, taxes