Under what circumstances do you believe tax avoidance (as opposed to evasion) is legitimate?
Companies and wealthy business people are often criticised for employing expensive accountants so that they pay very little tax, but it seems to me unreasonable to maintain that any reduction of one's tax liability should be condemned. Where, if anywhere, should the limits be?
Law & Ethics - 4 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
When you can afford clever expensive accountants to do your books. They will find it if you pay them enough.
Answer 2 :
Truthfully, given the choice would you pay 40% Corporation tax? I live in the Channel islands (tax haven) and there are 1000s of companies setup here to avoid tax, even if the government put limits in to stop this, there are still far cheaper places to setup, however this is ruining the economy. Large companies do not claim every penny tax back because it's not worth the time and effort in some cases, local shops are a lot more likely to do that.
Answer 3 :
No limits whatsoever.
Answer 4 :
Tax avoidance is legitimate in all circumstances after all it is only taking advantage of the laws which governments put in place. Tax evasion is illegal. It is perfectly legitimate to try and reduce your tax burden through LEGAL means. There is not a single person in the country who would not do so given the opportunity. What these companies and "wealthy" invdividuals do is a lot more legal than the "normal" people who pay the builder in cash to avoid the vat or don't declare the income from their e-bay sales or the lodger.
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