Tax Declaration Does not Stop Tax Evasion

Richard Murphy, a chartered accountant at Tax Research UK, has said that suggestions for politicians to publish their tax returns would not still not show up cases of tax avoidance .

He added that those who wish to evade tax usually hide their total income.

Most tax avoidance is not visible on the tax return .

A key of the tax evader is to ensure their income is not theirs. They move it on to, usually, an off-shore trust. Hence, they only need to publish a tax return which does not show the full picture.

He continued to say that Government’s proposals for a crack down on tax evasion are “far too weak” and urged for more company tax information to be published.

He stressed that transparency is crucial as individuals and companies are embarrassed should their affairs be proven to be contrary to natural justice and that the environment needs to be altered so that many more people at HM Revenue and Customs work on this issue.

Murphy emphasised the advantage of a straightforward tax system so that the left and right can be in political agreement on this matter which can otherwise be highly controversial and divisive.