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Reck B

Tax Avoidance: "hmrc Too Cosy With Accountancy Giants"

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More at link:

http://www.independent.co.uk/news/uk/politics/tax-avoidance-hmrc-too-cosy-with-accountancy-giants-8588945.html

The Treasury is “unhealthily cosy” with the elite accounting firms that advise companies and Britain’s richest people how to avoid tax, Parliament’s spending watchdog will warn today.

There is a conflict of interest because the “Big Four” firms of accountants use inside knowledge gained from seconding employees to the Treasury to “sell clients advice” on how to pay less tax.

The tax authorities are outgunned by PwC, Deloitte, Ernst & Young and KPMG because the firms have four times as many staff advising multinationals on how to limit their tax bills as HM Revenue & Customs has working on tackling such avoidance.

The firms employ 9,000 staff between them, including 250 specialists on “transfer pricing” to shuffle profits between different countries, while HMRC has only 65 staff working in this area and is “not able to defend the public interest”, the Public Accounts Committee points out. HMRC shows “continuing weakness” in the “never-ending game of cat and mouse” with the Big Four, which earn a total of almost £2bn a year from their UK tax work, the committee’s chairwoman, Margaret Hodge, said.

“The large accountancy firms are in a powerful position in the tax world and have an unhealthily cosy relationship with government,” said Ms Hodge. “They second staff to the Treasury to advise on formulating tax legislation.

“When those staff return to their firms, they have the very inside knowledge and insight to be able to identify loopholes in the new legislation and advise their clients on how to take advantage of them. The poacher, turned gamekeeper for a time, returns to poaching. This is a ridiculous conflict of interest which should be banned in a code of conduct for tax advisers.”

Worth re-posting this hilarious prank;

"You will leave immediately before we set the dogs on you"
:lol::lol::lol:

By the way, Margaret Hodge herself has what some might call "tax avoidance" systems in place. She is worth £18million and has shares in her family company tied up in family trusts to avoid inheritence tax.

http://order-order.com/

Edited by Reck B

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More at link:

http://www.independent.co.uk/news/uk/politics/tax-avoidance-hmrc-too-cosy-with-accountancy-giants-8588945.html

Worth re-posting this hilarious prank;

:lol::lol::lol:

By the way, Margaret Hodge herself has what some might call "tax avoidance" systems in place. She is worth £18million and has shares in her family company tied up in family trusts to avoid inheritence tax.

http://order-order.com/

Hodge is a tax-avoiding champagne socialist hypocrite of the first order.

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Not just accountants.

I know several ex-senior treasury staff now working for the big banks and lobbying their ex-colleagues for less regulation.

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Not just accountants.

I know several ex-senior treasury staff now working for the big banks and lobbying their ex-colleagues for less regulation.

Would it be too difficult to put restrictive covenants in certain employment contracts to stop this happening?

EG, if you work in the treasury/HMRC you cannot work in a private sector finance role for 5 years.

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Government is in essence private business dressed in the pretence of public clothes.

It's a contrivance, a scam, a lie.

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Government is in essence private business dressed in the pretence of public clothes.

It's a contrivance, a scam, a lie.

Is it not technically corporatism, which is a form of fascism in which state and big industry merge?

Peter.

Edit: According to wikipedia, there are many types of corporatism. Whatever the exact type, the following is the sort I am worried about. 21st Century Feudalism:

The second problem is far more fundamental and thus more difficult to tackle. This is that at senior, managerial, levels, in central government (and to a lesser but growing extent in local government and public services more generally) public administration and public policy making in Britain has been turned from serving the broader public interest, to serving the interests of corporate Britain, the 1% and those individuals and organisations (such as the big four accountancy firms)whose role in society it is to promote and support the narrow interests of this ‘elite.’

Edited by Blue Peter

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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