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Are the Government’s tax avoidance measures working?

You know things are bad when the Treasury Committee takes a good long look at your figures and declares, ‘well we’re really not sure what exactly is happening.’

All right, that’s not an exact quote of course but it’s rather close to the sentiment behind the department’s newest report claiming that there are some serious uncertainties when it comes down to the tax avoidance measures the government is taking and what kind of effect they’ve been having financially. It turns out that by their very nature alone, anti-avoidance measures are a bit spotty when it comes to forecasting the actual additional revenue the initiatives will generate.

Hopes are high amongst the contractor community that aggressively pursuing freelancers will turn out to not be cost-effective. Of course if you listen to the Government it insists that some £6.8 billion in new revenue will be brought in by even more tax avoidance measures currently in the planing stages.

In all honesty it feels like to me that the Government has gone around the bend on this whole tax avoidance issue, especially since it seems that the majority of the effort is being misplaced; instead of attempting to rip the heart out of any and every small business and self-employed Brit the Government could easily shift its focus to a few large, high-profile cases of tax avoidance – the kind you get with massive multinationals.

That’s right – companies like Amazon and Google are getting away with murder. These companies, with offices and operations spanning the globe, use known legal loopholes in the tax law as it exists to end up not having go pay nearly as much in tax as they normally would be. Of course this is unlikely to change any time soon, considering how most of these companies have their hands firmly up the arses of politicians like one of those Jim Henson uppets. It must be nice to have the entire Government in your pocket, don’t you think?

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