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Readers who saw the reports, a few days ago, about the UK’s 50 biggest taxpayers, may also have had the same thought as me: how do they know? It is no disrespect to the journalists involved to say that the figures must be treated with a large pinch of salt. Anybody who deals with high earners knows that there can be a world of difference between apparent levels of income and the amount of tax payable. Part of the seeming discrepancy, probably very small, may be attributable to avoidance or even evasion but, for most it will be because of the legitimate use of reliefs and the sheer complexity of how the tax system deals with different types of income and gains.
Is there any value to this sort of survey? For all its faults it does at least show that many high earners do contribute large amounts of tax. If that helps to counter the perception that tax is only for the little people then it has a positive impact. But there is the danger that if somebody is not on the list they will be regarded with suspicion even if they have paid all of the tax which is properly due. The question for me is whether there is a case for full public disclosure of every citizen’s tax return, as happens in some Scandinavian countries.
I do not advocate that now, but we need a proper debate about what tax information is and is not disclosed. We currently have a piecemeal approach, ranging from coronavirus job retention scheme statistics to the minimum wage violation list. A co-ordinated view on what society actually wants from tax transparency would be a good starting point.
