UK, A Heaven for Tax Avoidance Schemes?
Over the past few months, the news of companies tax avoidance scheme has been rife in the media. In January more tory tax avoidance scandals came to light. This time, HMRC has announced that the Isle of Man-based Knox Group, which provides financial services and wealth management- founded by Michelle Mone’s husband Douglas Barrowman has been involved in a number of tax avoidance schemes.
AML Tax (UK) Ltd, a Manchester-based organisation that oversaw the three newly identified tax avoidance schemes, was described by HMRC as "a part of Doug Barrowman's Isle of Man-based Knox Group.".
By the end of January, the specifics of five additional tax avoidance schemes, three of which were backed by AML Tax (UK) Limited, were revealed by HM Revenue and Customs (HMRC) came to light
AML Tax (UK) Ltd. was fined £150,000 last year for failing to give HMRC the legally required information as part of a tax investigation,
We should not be surprised by the above behavior though, the truth is that politicians who think they know best and want to promote certain types of economic activity have created an incoherent tax system in the UK with exploitable loopholes.
According to HM Revenue and Customs, the tax gap—the difference between expected income for the exchequer and actual receipts—was predicted to have increased by about £2 billion in the 2019–20 financial year compared to the same period in 2018. According to official statistics, the amount of tax that Britain loses each year due to fraud, avoidance, and non-payment has increased to £35 billion.
Most of the tax avoidance schemes currently being marketed to the UK public, in HMRC's estimation, are being promoted by 20 to 30 promoters. Additionally, it predicts that between 70 and 80 non-compliant umbrella firms are running disguised remuneration schemes.
Click here to read the latest tax avoidance list