Originally Posted by
KerrAvon
I've taken a quick look at the sentencing guidelines for the fraudulent evasion of excise duties. To get a five year sentence, the fraud that you are talking about was probably somewhere in excess of £5 million. That’s money that could have been used for public services for all – instead the enterprise has enriched a few individuals.
It does demonstrate a point, however, which is that nobody really likes paying tax. The people who bought the cheap baccy probably didn’t think it through, but they were complicit in what was happening and were taking money away from the funding of public services that I suspect many of them would be users of.
Companies arrange their affairs so as to keep their tax bills to a minimum. The people who run businesses have a duty to the owners of the business capital to do so. They are no different from an individual who arranges his or her tax affairs to reduce their liability – common examples of that would be people who pay into pensions or use ISAs to hold their savings and take advantage of the tax breaks associated with them.
The (bleeding obvious) difference between the tobacco duty dodgers and their customers and companies is that the latter will (generally) be operating within the law, whereas the former were not. And you are right, even if companies arrange their affairs so as to reduce their UK tax liability, they are still employing people in the country and paying local taxes such as business rates.
If you can’t see a difference, I presume you don’t mind paying more tax than you are required to? If that is the position you could, say, ask your employer not to apply your personal allowance when working out your PAYE liability. They might be a bit confused if you do, but you can explain that you don’t like people or companies operating within the law to reduce their tax liability.