Is wearing a panama hat corruption?

06 Apr 2016

British Territory “tax havens” can only be used for avoidance if the national laws of the avoider permit this.  So long as those jurisdictions have open and transparent information exchange with national governments then in British terms, at least, there really shouldn’t be any problem.  I may wish to conceal my wealth from others, and so long as “others” doesn’t include the taxing authorities this is legitimate.  Legitimate tax planning is sensible; if you work outside your home country for 20 years in a poorly regulated environment, you might wish to “stash the cash” somewhere safe; let’s not think that “offshore” means illegal, or immoral.

Critics of the UK Government say the ‘Panama Papers’ reveal the Conservative’s hypocrisy over tax avoidance, suggesting its rhetoric is not matched with action, but the government has a duty to the residents of the various territories, notably the British Virgin Islands.  Some of the criticism being levelled seems to work for Ireland!   Richard Pyle of Oxfam says the leak “highlights the key role that UK-linked tax havens play in allowing a privileged elite to dodge paying their fair share of tax” while Toby Quantrill of Christian Aid adds that the UK “simply cannot continue to provide cover for the rich and powerful who wish to operate in the shadows.”  It is not clear what expertise highly-paid professional charity executives have in regard to global tax protocols, but we need to keep our feet on the ground over this.  If I want to set up a chain of holiday villas around the world, wouldn’t it make sense to headquarters that in a low-tax regime?  In the UK I’ll pay tax on the UK income, so no loss to anybody there anyway so please don’t feel that this is wrong in some way.  We need to know the difference between right and wrong and act accordingly.  I’m driving home in a potential lethal weapon, but I have a license to operate it and am subject to inspections, so I think that’s OK.