The Jimmy Carr witchhunt should end
The comedian acted within the law.
By Josh Spero Published 21 June 2012 11:28
Jimmy Carr has done the politic thing by tweeting about his tax avoidance, "I now realise I've made a terrible error of judgement," but it's a sad outcome to a witchhunt. There is nothing illegal about what he has done and he should not have been forced by the prime minister and a press pack of hounds into apologising.
This is not a defence of tax avoidance: as a moral issue, I feel that people should not take excessive measures to avoid tax, even though as editor of Spear's, a magazine for high net worths, many of my readers pay clever lawyers and accountants to do just that.
However, if we start calling people who obey the law "morally repugnant", we are in danger of undermining one of Britain's great strengths and sources of international renown, the rule of law. If judges have to hand down rulings on the basis of morality - or worse, what the prime minister thinks - then we will have done great damage.
People cannot arrange their affairs - whether for great fortunes or small businesses - fearing that the law may be retrospectively changed to make legal manoeuvres illegal, indeed not even illegal but "immoral".
A clampdown on tax avoidance is under way. The government will introduce a General Anti-Avoidance Rule which makes the spirit of the law, not its letter, the measure, and this will end once and for all the more outlandish schemes we have seen, such as K2 and Eclipse 35.
But until that point, abusing those who operate within the law, humiliating them, dragging their personal affairs into the public eye - none of these things is acceptable.
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9 comments
Frankly, this is just financial McCarthyism. Somebody talks about the tax shelters that Cameron's late father used, and the what happens? The Toryies say right. Time to strike back. Who can we have a go at? I know! Ken! Jimmy Carr!
Not once does Cameron say the corporations that have been bailed out by the govt. and who pay no or almost n tax at all are "morally repungant"? Why? Because you never piss off your campaign donors.
Can we please have published David Cameron's fathers tax avoidance scheme where poor David got just under the maximum allowed before he had to pay Death Duties on inheritance, as did all his family,and the rest invested in the Bahama's area to ensure tax free bonus for when Mr Cameron exits office at the next election.
I notice David C did not quote his own ilk when condemming Carr.
Carr should have issued a statement, after David Cameron's outburst, stating that he would be delighted to pay the same rate of tax as every other UK adult, on income of any kind, immediately after the coilition government introduced legislation to that effect. The UK government could use the guilitine procedure to put such legislation on the statute book in 24 hours if they really had a consistent, moral, position on tax. Such a statement by Carr would have exposed the vomit-inducing hypocracy and double standards of the coilition government.
Sure Carr did a bad thing.
However, I can't help but think other, far richer people, doing similar dodges are never going to see a backlash even close to what Jimmy's getting, because they're on the side of the newspapers and the Government.
I just hope this doesn't end up a career wrecking thing, or we'll not be seeing any tax out of him next year either. Let him bounce back, and, so long as he behaves, it'll be good for everyone.
I agree with so many that the whole thing needs to be vastly simplified. I run a group in a damned video game, and over the years, the rules list has got longer as new things have come in and attitudes have changed, and every now and then we go thru the rules, edit, adjust, and cast out the old and irrelevant.
Sounds like an 11,000 page document sure needs an editor.
There has to be a simple way, for instance, that if a company is making a profit in Britain, for it to be taxable in Britain. and VAT on sales and income tax on staff doesn't count, that's just hitting the lowest earners, as usual. The ones taking a cut from the annual profits should be getting a reasonable hit too.
Always amuses (or is it sickens) me to hear people say they'd quit if they had to pay a full rate of tax, that it wouldn't be worth working here, go for it, leave, if you're not paying tax you're no use anyway, so make room for some new talent.
This idea that if they lost 10 or 20% of their millions they'd be unable to carry on is just BS, pure and simple. If you leave the country, someone else will take your place and we won't miss you.
You are following most Journalists in thinking K2 is Legal.
Yes, it's not Tax Evasion and illegal but it breaks existing Anti-Avoidance Legislation including 1 law on the Statute Books since 1936!
Tax Mitigation or Planning is lawful but Schemes like K2 are just Fools Gold!
This government, the last government, every government, will shake it's collective head at those naughty persons who make morally dubious but lawful decisions. Surely one of the roles of government is to stop the loopholes? Why is it with subject after subject (tax evasion, rubbish management in the NHS, excessive pay for CEOs, falling education standards (despite improving exam results!), insufficient affordable housing etc.) they shake their heads, say that something must be done and then do absolutely nothing to resolve the situation. Couldn't be a case of vested interests, could it?
In this case, I am sure that what MPs earn at Westminster attracts tax through PAYE and they pay it but what about the speaking engagements, the paid for holidays, the freebies that go their way, the books that they write? Are they all being scrupulously upright and declaring every penny or do they, also, come to an arrangement with HRMC and pay what they think they might?
That said, Jimmy Carr is both an idiot and a hypocrite for participating in these tax schemes, whilst parodying them on 10 O'Clock Live. That, and saying he wasn't aware, just prove that he's a moron.
Completely agree -- reducing the issue to purely one of morality is ridiculous. Rational self-calculation dictates that if an individual can find a way to get around the system, they will. Morality doesn't come into it, and it's a con that the government are pretending that it does, and that the 'rich' should question their actions. The solution lies in simplifying the tax system where possible and closing loopholes ideally without creating too many new ones (obviously, they will always exist).
From an economic point of view, morality equals fluff.
Completely agree -- reducing the issue to purely one of morality is ridiculous. Rational self-calculation dictates that if an individual can find a way to get around the system, they will. Morality doesn't come into it, and it's a con that the government are pretending that it does, and that the 'rich' should question their actions. The solution lies in simplifying the tax system where possible and closing loopholes ideally without creating too many new ones (obviously, they will always exist).
From an economic point of view, morality equals fluff.