Tax avoidance or tax aversion? Why we need a vision

The investigation into the K2 tax avoidance scheme prompted understandable outrage. But rather than questionning the morality of the individuals involved, it would be more useful to ask why people try to pay less tax in the first place. Less about individual tax avoidance, more about our society-wide tax aversion.

It’s a serious issue – apparently costing the UK £69.9 billion per year – and it’s worth remembering it isn’t confined to the super wealthy (and let’s also remember not all rich people avoid tax). While Jimmy Carr may have admitted his terrible error of judgment, the dilemma he faced (in his case “I met with a financial advisor and he said to me ‘Do you want to pay less tax? It’s totally legal’. I said ‘Yes’.”) is the same one that leads many others to take cash payments, or to pay dividends instead of larger PAYE salaries, or to invest money off-shore. Let’s face it – rich or poor, we don’t seem to like paying tax.

Continue reading…