View all newsletters
Sign up to our newsletters

Support 110 years of independent journalism.

  1. World
  2. Asia
5 April 2011

Cameron tells Pakistanis tax non-payment is unfair

David Cameron criticises Pakistan’s tax-dodging rich at a press conference in Islamabad.

By Liam McLaughlin

In a speech at a press conference in Islamabad, David Cameron told Pakistan’s elite that:

Many of your richest people are getting away without paying much tax at all – and that’s not fair.

When considering Cameron’s words, let’s remember that the UK facilitates the very same actions through its sovereignty over 13 of the 24 biggest tax havens in the world, including Jersey, Guernsey, the Cayman Islands and the City of London.

First, it is important to note that the vast majority of people considered “rich” in the UK do pay their taxes. According to Her Majesty’s Revenue and Customs (HMRC), there are roughly 327,000 people who earn more than £150,000 per year – the rate at which the 50p tax is introduced. HMRC predicts that by the end of this fiscal year, the richest 327,000 will be paying 26.7 per cent of the total tax collected in the country.

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

Nevertheless, a request filed by the London Evening Standard under the Freedom of Information Act in 2007 revealed that in 2004-2005 only 65 of the roughly 400 UK-based individuals who earn £10m per year or more actually paid income tax. The failure was estimated to have lost HMRC up to £2bn in revenues.

The related issue of companies in the UK not paying tax has been brought to mainstream attention by the recent UK Uncut protests – fingering Vodafone, Topshop and Boots, among others, as having allegedly “dodged” paying billions.

The chairman of Pakistan’s Federal Bureau of Revenue (FBR), Salman Siddiqui, recently issued notices to the wealthiest 700,000 of Pakistan’s 2.3 million rich to give up withheld taxes. Although the number of non-payers is far higher than estimates in the UK, Cameron would be better advised to clean up the UK’s own mess first before preaching to other countries.

Surprisingly, Cameron did not make the distinction between tax evasion and tax avoidance in his speech. Whereas the latter is considered legal – when taxes are not paid, using the help of loopholes – the former is considered illegal: non-payment of taxes that breaks the law.

A committee was set up to investigate the costs and benefits of having a General Anti-Avoidance Rule for the UK earlier this year. It has until 31 October 2011 to come to a conclusion.

Content from our partners
Inside the UK's enduring love for chocolate
Unlocking the potential of a national asset, St Pancras International
Time for Labour to turn the tide on children’s health

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU