Accountants Criticise Clegg Tycoon Tax

Accountants have slammed deputy prime minister Nick Clegg for the calling for a “tycoon tax”.

Clegg criticised “multimillionaires avoiding tax by moving their money around” and declared that most of them pay less than 30 per cent or even 20 per cent tax.

Tax experts from the UK’s four biggest accountants doubt his claims.

Alex Henderson of PwC stated that “I know one reads headlines saying that people aren’t paying the full amount of tax, but it’s actually quite difficult to hide tax and high earners are paying a high rate.”

The average payout for those earning over £1m is 45.5 per cent tax.

Most people in fact pay out 50 per cent or more in tax and HMRC police that incredibly well.

Henderson confirmed that the type of person who would be adversely affected by the proposal for a tycoon tax would be someone who earns £60,000 p.a. and who pays a £20,000 pension contribution. That is a way off from being a tycoon.

Clegg aims to copy the American alternative minimum tax which is designed to prevent the rich from using exemptions to cut their income tax well below a specific level.

Patrick Stevens of Ernst and Young stated that such deductions are “nowhere near as prevalent” in the UK, so, “to that extent [Clegg’s proposal] is an answer looking for a problem.”

A Lib Dem spokesperson has gone on record to say, “The Treasury are looking at whether it’s appropriate. It would have to fit the tax model here.”