Tax 'optional for super-rich'

Date: 29th January 2008

The extremely wealthy members of British society dodge their tax commitments to the tune of £13 billion each year, a new report is set to reveal.

According to the Observer, findings due for release by the Trades Union Congress (TUC) later this week will unveil the true extent of the major tax avoidance practiced by the UK's super-rich.

The study claims that the Treasury loses out on £3.8 billion each year as a result of non-domicile tax evasion, while the controversial practice of income shifting accounts for another £3.2 billion in lost revenue. The remaining £6 billion is the result of tax planning and various other loopholes.

"A wise government would recognise the shift in public mood when they see police officers marching against a decision that a modest pay rise was unaffordable, when it looks like tax has become optional for a small group of the super-rich," commented TUC general secretary Brendan Barber.

He added that it was time for a debate in the UK about "whether the tax system is fair".

The government is currently attempting to clampdown on income shifting, which occurs when businesspeople gain tax advantages by sharing profits and dividends between family members or other associates.

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