In the August 2016 Taxcast: The Big Four accountancy firms: Are they in fact more like the Big One? And should they be broken up? Also: the Duke of Westminster’s 9 billion tax free inheritance and how his family history forms the legal basis for the justification of tax avoidance around the world; why are the world’s biggest banks now officially endorsing transparency measures? And…so much for Panama cleaning up its act post-Panama Papers scandal: we discuss the demise of Panama’s not-so-transparent Transparency Commission.
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Tax evasion is an illegal – usually criminal – activity, by which a taxpayer escapes tax through deception. Tax avoidance, on the other hand, means getting around (or avoiding) the spirit of the law without actually breaking the law. There is a large grey area between the two poles of avoidance and evasion.
Revenue, to fund public services, infrastructure and administration.
Redistribution, to curb inequalities between individuals and between groups.
Repricing, to limit public “bads” such as tobacco consumption and carbon emissions.
Representation, to build healthier democratic processes, recognising that higher reliance of government. spending on tax revenues is strongly linked to higher quality of governance and political representation.
Reparation, to redress the historical legacies of empire and ecological damage.