Tax Avoidance in The Times Tax Avoidance in The Times
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  1. #1

    Contractor Among Contractors


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    Default Tax Avoidance in The Times

    The Times has a front page article covering tax avoidance schemes based in Jersey.

    I cannot link The Times site but the Daily Mail is running with the article:

    The 1% tax haven: Comedian Jimmy Carr 'has £3.3m in Jersey avoidance scheme' | Mail Online

    Jimmy Carr jokes about the government cuts yet is paying hardly any tax!

  2. #2

    Nervous Newbie


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    Excuse my ignorance, can someone please explain the scheme?

  3. #3

    Banned


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    Quote Originally Posted by posterboy View Post
    Excuse my ignorance, can someone please explain the scheme?
    I would also like to understand it - Something to do with loans from what I can gather

    I thought this was all outlawed

  4. #4

    Godlike

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    The loan schemes are usually something along these lines:

    The money from your contract goes to the company running the scheme. They loan you back the money minus their fee. No tax is payable on a loan. The loan is never called in. The dodgy part is that the part about never paying back the loan can't be official otherwise it ceases to be a loan and becomes taxable, so you're relying on their goodwill to never ask for the money back, but legally they could do it.

  5. #5

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    Quote Originally Posted by Bunk View Post
    The loan schemes are usually something along these lines:

    The money from your contract goes to the company running the scheme. They loan you back the money minus their fee. No tax is payable on a loan. The loan is never called in. The dodgy part is that the part about never paying back the loan can't be official otherwise it ceases to be a loan and becomes taxable, so you're relying on their goodwill to never ask for the money back, but legally they could do it.

  6. #6

    Should post faster


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    Quote Originally Posted by Bunk View Post
    The loan schemes are usually something along these lines:

    The money from your contract goes to the company running the scheme. They loan you back the money minus their fee. No tax is payable on a loan. The loan is never called in. The dodgy part is that the part about never paying back the loan can't be official otherwise it ceases to be a loan and becomes taxable, so you're relying on their goodwill to never ask for the money back, but legally they could do it.
    But surely if they call the loan in they then have to give you your original capital that you could pay it off with?

  7. #7

    Froglike

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    Quote Originally Posted by Kanye View Post
    But surely if they call the loan in they then have to give you your original capital that you could pay it off with?
    Think abou it...

    You Some company gifts them your own money the fees for your services, which they then launder loan to you.

    If they call the loan in, what happens to your the original money?

  8. #8

    My post count is Majestic

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    The K2 tax scheme, a Jersey-based accountancy arrangement, is used by 1,100 people.
    It works by transferring salaries into a Jersey-based trust, which lends investors back the money.
    As the loan can technically be recalled, it is not subject to income tax.
    Jersey is self-governing, with its own financial, legal and judicial systems. It has no VAT in place and sets its own income tax.
    And low taxation is the reason why the affluent flock to the tiny island.
    Income tax is a flat-rate of 20 per cent. Britain, in contrast, charges top earners 50 per cent, although this will fall to 45 per cent next April.
    Jersey's s Goods and Service Tax (GST) - equivalent to the UK’s 20 per cent VAT - is also far lower at 5 per cent.
    But beyond that, non-residents have also benefited. An accountancy industry has thrived in what critics say is a lax regulatory environment – finance makes up 41 per cent of its economy compared to, say, 4 per cent for hospitality.
    But ‘tax havens’ worldwide, from Bermuda to Liechtenstien, have come under pressure to clean up their act as the cash-strapped U.S. authorities and EU governments try to claw back tax lost to avoidance schemes.
    Jersey rejects the criticism saying it is a ‘transparent and cooperative jurisdiction’. It calls the perception of it as a tax haven an ‘ancient myth’.



    Read more: The 1% tax haven: Comedian Jimmy Carr 'has £3.3m in Jersey avoidance scheme' | Mail Online
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  9. #9

    More fingers than teeth

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    Just call it Shariah contracting, nobody will dare complain then.
    bloggoth

    If everything isn't black and white, I say, 'Why the hell not?'
    John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson)

  10. #10

    Should post faster


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    Quote Originally Posted by xoggoth View Post
    Just call it Shariah contracting, nobody will dare complain then.
    Even if it was a Jewish scheme supported by the Friends of Israel?

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