Politicians need to act against avoidance, as well as evasion, while public sympathy exists
KEY POINTS
- Is present action prompted by domestic or international pressure?
- The tax tests of simplicity and expected results.
- A changing tide against avoidance illustrated by recent court cases.
- Three suggestions for improvement to the tax framework.
- The public mood is supportive of action against tax evasion and avoidance.
To the politician a call for a clampdown on tax evasion is the fiscal equivalent of kissing a baby: it is uncontentious; it offends no one; and it provides an opportunity to pose as a guardian of the public interest. That is why everyone – from the government to the EU and the OECD – has made the increased provision of tax information a priority.
There is another side to it too: money is needed at the moment and the collection...
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