December 29, 2010 10 Comments
Mark Wallace pointed out that people being advised to buy goods before the VAT rise may actively be making decisions in order to avoid paying more tax on Twitter today. Dizzy Thinks then asked whether UK Uncut would be protesting at those people paying into pension funds thereby avoiding paying tax.
Unable to resist, then I got in on the argument asking about whether UK Uncut would be annoyed by the millions of people who will take advantage of their new ISA allocation later on in 2011, in order to avoid paying tax on the interest on their savings.
Now one tweeter pointed out that the money ISAs has already been taxed. Probably true in the majority if cases if it was taxed as income. Firstly isn’t that the point. I have no qualms about avoiding tax on income already taxed, but that would be like saying my income is taxed and then I pay more tax through VAT. But of course money in an ISA may not have been taxed. I could have been given it as a one off tax free gift. Does UK Uncut think it wrong and immoral for me to avoid tax on any interest by then sticking in an ISA.
Frankly any organisation that doesn’t attempt to limit their tax liability in line with the law as it currently stands would be rather silly.
So my question is simple… Is it morally wrong to try to limit or avoid paying tax, or is it the morally right thing to do? You know how best to spend your own money, not the state?