Tax Evasion - No Man is an Island  

Tax evasion is under increased scrutiny as the UK faces a long, drawn out recession.

Tax evasion is nothing new. Taxes have been dreaded ever since their invention, as the famous saying 'nothing is certain but death and taxes' highlights. Tax evasion is something that has been debated and contended over the years. The fatalistic proverb highlights the difficulty in avoiding tax. Famous authors from Benjamin Franklin ("In this world nothing can be said to be certain, except death and taxes.") to Margaret Mitchell ("Death, taxes and childbirth! There's never any convenient time for any of them.") have commented on the desire for tax evasion. But tax evasion is increasingly scrutinised in today's economy where, thanks to the global recession, every penny counts.

Tax Evasion and the Channel Islands

As well as the global economy putting tax evasion into the headlights of the news headlines, another news story has raked up the debate. The Channel Island of Sark, a previously feudal state, faced its first democratic elections in 2008. And the elections turned into something of a farce. The Barclay Brothers, the reclusive business tycoon twins who own the Telegraph newspaper, put forward political candidates for the election. When the voters didn't elect the Barclay brothers' preferred political candidates, they withdrew their financial investment in the island, leaving a sixth of the population out of work. The story ties into the debate around tax evasion as it highlights the unique character of the Channel Islands; a place that has long operated on by separate regulations to the rest of the British isles.

Offshore Tax Evasion - The Sark Lark

The offshore tax haven and tax evasion opportunities are well known. Sark, alongside Alderney, Guernsey and Jersey are tax havens. Tax evasion has been dubbed the 'Sark lark' - where companies pay Sark inhabitants a fee to be nominal company directors - allowing the companies to operate beyond the reach of regulators. And political attentions are being turned onto these islands under British control as the financial crisis hits home.
Many wealthy individuals and companies in the City are rumoured to have routed business offshore to avoid tax. But now the financial markets that safeguarded the tax havens have collapsed, some believe reform may now be on the cards.

Gilbert Tax Will deal with The Inland Revenue For You

At Gilbert Tax, we have over 80 years experience helping clients deal with tax investigation. We are also quite skilled in negotiating disclosure, relative to tax evasion, so as to avoid or limit financial penalties. For a private discussion of your tax matters, please call Gilbert Tax on 0800 734 3333 or email us at scott.gilbert@gilberttax.co.uk.

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