Tax

The GAAR Will Be Another Tax Rise

With a new General Anti Abuse Rule from April 2013, the Chancellor hopes to raise billions in extra tax revenue. Tackling tax avoidance is now marketed as fighting crime or immoral behaviour. But it will be like any another tax increase: the GAAR will tax next year  what is not taxed today.

UK Will not Support the EU Tackling Low Tax Rates for Multinationals

Published on 29/06/2015

Britain will not adopt common taxation rules with the EU as it attempts to combat multinational tax avoidance.

Brussels is keen to introduce certain common tax harmonisation rules which would go some way to eliminating the option for companies to divert profits through low-tax jurisdictions such as Luxembourg.

However, financial secretary to the Treasury, David Gauke has stated that Britain would not adopt the measures. German MEP Michael Theurer said that “It was a real shock from the minister.”

Driverless Cars are a Threat to Government Taxation

Government has used a cloak of safety to fine drivers for all manner of things including those who have erred slightly above arbitrary speed limits.
The problem, for government revenue? Driverless cars avoid many human weaknesses. Google, having mapped everything, know where speed limits change and have programmed driving computers to be paragons of virtue. Meanwhile advances in artificial intelligence show no sign of convincing computers to mix fermented beverage intake with motorised manoeuvres.
The net effect of puritanical driving standards from the droids will be a catastrophe for government tax collection. Without the ability to exploit human frailty, traffic cameras will be redundant and central government will have a large hole in its revenues It will certainly be another nail in the government’s ability to spend other people’s money, as other people won’t be doing the driving.

Taxed to the End; By 2019, 262,000 Estates (+800%) Will Pay IHT

Britain has the 2nd most onerous inheritance tax regime in the world with only Ireland being worse.

Treasury forecasts suggest that the number of families required to pay inheritance tax will rise by an astonishing 35% this year, to 35,600. That number is expected to jump to 43,800 next year. Over the next 5 years, an increase of 800% is projected, representing 262,000 families.

It needn’t be like this; with adequate planning, there are many legal ways to minimise IHT.

Protect your wealth NOW.

Government Helping Themselves to YOUR Wealth

Published on 02/06/2014

From MoneyWeek:

There are two ways a government can take your money from you:
It can openly force you to cough up large sums of cash, through taxes.

Or it can deceptively  use various underhand and devious ways of trapping, devaluing and taking your money.

That means taking YOUR wealth by:

Relentlessly Pushing Taxes Higher

Sure, they’ve slightly reduced taxes in certain areas of the economy – like corporation tax. But behind this smokescreen, they’re squeezing tax rates up everywhere they can.

But it’s equally effective to reduce tax relief on the money you’ve already earned – like your pension.

In the space of 5 years or so, the government has squeezed the limit on pension plans from £1.8M… to £1.5M… to £1.25M [not that these restrictions apply to MP’s, mind].

If this trend continues, what comes next? A one off “pension tax”on all pension pots? All out nationalisation of pensions? No one can say. But…..

YOU CAN TAKE ACTION

Protect Your Wealth NOW   ….Call us for an informal discussion on your options…. in a world of possibilities.

Private Sector Workers have to Earn 30% More Than the Equivalent State Worker

Fed up with paying for bloated public sector workers who are paid generous remuneration?

Unfortunately, with the VERY generous pay and conditions in the public sector, you must earn 30% more in order to match their remuneration.

Check out this calculator at the Tax Payers Alliance

Coalition Tax Rises Now Total 509

Tax rises

Since the Coalition Government came to power in 2010, 509 tax hikes have been announced

Of these, 402 tax hikes have already been implemented and 107 are planned

“The fact that there have now been in excess of 700 separate tax changes enacted or planned since this Government came to office is compelling evidence of the urgent need for reform of a complex and unstable tax system.

The new figures show a drastic increase in the number of people who will get clobbered by ever higher bills for a whole range of taxes, including Stamp Duty and Inheritance Tax.”

Matthew Sinclair, Chief Executive of the TaxPayers’ Alliance

UK has highest property taxes in OECD

The UK pays higher property taxes than any other country in the developed world; costing over £60B pa, according to the think tank Policy Exchange.

Charges such as stamp duty, council tax, capital gains tax, inheritance tax and business rates are higher in the UK than any of the 33 other members of the Organisation for Economic Co-operation and Development (OECD).

The taxes are worth 4.1% of Britain’s economic output, compared to an average of 1.8% across the OECD. In Germany, it is only 0.9%.

US Treasury Exceeds Legal Borrowing Limit of $17T

House Speaker John Boehner earlier this week said Republicans won’t agree to raise the debt ceiling without spending cuts. The current limit was expected to be reached sometime between October and December, according to Reuters.

Why Does a £50 Note Have Value?

It’s interesting the range of answers you get from people when asked this question.

One person said “gold“, which has nothing to do with it. There was a time when you could demand a fixed weight in gold in exchange for a Pound, but that finished on the day WWI started. Another said, “You can buy things with it” — an answer that only begs the question why that it so? “Faith” said yet a third. Not quite.

Tax liabilities give otherwise worthless paper, value. Sterling has value because the government levies £600B in tax liabilities annually and accepts only Sterling in payment — which only it issues. HMRC only accept Sterling or Sterling converted currencies to settle tax bills. In so doing, the government turns all of us into Sterling chasers. It’s how a state – any state, can turn worthless pieces of paper into valued currency.

“The modern state can make anything it chooses generally acceptable as money,” economist Abba Lerner wrote in 1947. “If the state is willing to accept the proposed money in the payment of taxes and other obligations to itself, the trick is done.”Brilliantly devious, isn’t it?

As economist Warren Mosler puts it: “When the government spends, only two things can happen to that money….. the money can be used to pay taxes, or it isn’t used to pay taxes. In which case, somebody out there still has it.” So deficit spending equals financial savings at the macro level. Government debt, then, is a form of savings for the private sector. Everywhere there is a Treasury security there is someone who owns it. For that holder, it is a part of his financial wealth, or savings.

The trouble with budget surpluses is they take money out of the economy. That puts pressure on private-sector balance sheets. Most people think that the government collects taxes and sells gilts to finance its spending. But remember, the government issues Sterling paper. It can’t run out. This sounds scary, but it’s the naked truth of a fiat currency system. The UK government faces zero solvency risk. It can always meet all of its bills . Further, think about it from the beginning: What must a government do before it collects its own money in taxes? It has to spend the money first. That’s how people get Sterling to meet the tax. So logically, spending precedes tax collection. 

As it stands, Sterling still has value within global financial system. But eventually, that value will drop to zero. It might be a year’s time or 5 or 10 years from now. But eventually, Sterling will collapse.

Protect your wealth – NOW.

[Paraphrased with Sterling instead of the Dollar from an article by Chris Mayer of The Daily Reckoning]

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