Paradise Papers ?

[observer]

With the media getting themselves into a froth over the revelation that some very rich people, employ an army of lawyers, accountants etc; to ensure their investments are "tax efficient" ;  we keep being reminded that tax avoidance is NOT illegal.   If politicians produce legislation, that is so full of loop-holes, that avoiders can drive a coach and horse through it, and if National Governments compete to attract investment via tax reductions; they only have themselves to blame.          

[asperity]

There's a lot of rot talked about "tax avoidance". Anybody who has an ISA is avoiding tax, in a very legitimate way. Most pension funds make use of schemes that are tax efficient in that they avoid tax using legal means. Calling these legal means "loopholes" is very ingenuous to be fair.  Even the leader of the opposition and the shadow chancellor (who are trying to make political capital out of this non story) have ISAs and pension funds using these "tax avoidance" schemes. The BBC of course is making a big deal out of this, possibly in an attempt to draw attention away from their own dodgy "salary schemes".

[fugtifino]

...they only have themselves to blame...

I agree, something like this might be a step towards introducing some proper legislation:

https://you.38degrees.org.uk/petitions/promoted/clamp-down-on-tax-avoidance-in-the-uk?utm_source=email&utm_medium=blast&utm_campaign=6_11_2017_fls&bucket=email-blast-6_11_2017_fls&utm_source=&utm_medium=email&utm_campaign=blast2017-11-06

[observer]

The problem is, that individual Nations seek to attract investors with low tax rates, even within the EU (eg Ireland and Luxembourg); so unless global conformity can be achieved, economic competition between Nations will win.  As Asp says, anyone investing in an ISA will have no control over how their money is handled, other than the knowledge that fund managers will endeavour to maximise their returns, including the term "tax efficient".   Capital requires no passports or visa, and can be moved around the globe at the push of a button.    As for the point scoring in Parliament, it appears some Labour local Councils are involved in increasing returns via "off shore" tax efficiency.   So, no easy answers I'm afraid.         

[asperity]

Some local councils - including Warrington it seems.

http://www.warringtonguardian.co.uk/news/15435298.Council_to_buy_Birchwood_Park_____deal_planned_to____protect____its_front_line_services_and_jobs/

[observer]

Not sure this falls within the same bracket Asp.  Traditionally, Councils were swimming in assets, owning most, if not all the land upon which Council Housing estates were built (unless this was transferred to Housing Associations?).  Such asset strength placed them in a good position to borrow, if they were allowed (by HMG) to build more Council houses, which are clearly needed.   The off shore aspect, is banking reserves in a tax efficient manner, in order to maximise returns.        

[asperity]

You and I might say that it is using assets in a tax efficient way, others would say that it is a way of avoiding £10M tax (and therefore offending their sense of fairness).

[observer]

Like most "news" issues lately;  the media are diving in with both feet;   they've known about the off shore activities of large companies and individuals for decades, and so has HMG.   As I remember it, the last review of tax policy was carried out using "experts" to produce the legislation. Then those same "experts", knowing every detail and potential loop-hole, went into the private sector to advise clients on tax avoidance, thus making their personal fortunes.  It's another world !          

[asperity]

I don't know why someone is down-voting my comment, maybe whoever it is would like to express their opinion in words?

[observer]

Look no further than the snowflakes Asp !