Is this Tax Evasion or Tax Avoidance ?

John_Pierpoint

Sad isn't it:

http://cpi.transparency.org/cpi2012/results/

HappyMJ

Income splitting is tax minimization and legal. They don't have to do much. They never have to visit the office...maybe they are employed to clean the home office.

John_Pierpoint

In these days of 50%+ marginal rates of tax, I think you are making the case for the return of joint assessment?
We will see more and more of these artificial arrangements, which are not available to the ordinary tax payer.

Personally I would like to see an economy where more people grow up expecting to have to stand on their own two feet, with a tax level that does not encourage this sort of behaviour. Not everyone would agree, some seem to need a corporatist state to look after them:
http://www.taxresearch.org.uk/Blog/richard-murphy/

Some people must find it really hard work working for their spouse the whole time?




http://www.dailymail.co.uk/news/article-2205884/How-2-000-Britons-living-Monaco-costing-UK-1bn-year-lost-taxes.html

kidmugsy

They may well have been bent, but heed your husband! Almost anything you do (i) will not correct or punish the crookedness (if such it be) and (ii) will land you in the soup. If you're unhappy to work for people whom you have reason to suppose may be spivs, go and work somewhere else.

Nicholas-bloody-Parsons

HappyMJ wrote: »

Income splitting is tax minimization and legal. They don't have to do much. They never have to visit the office...maybe they are employed to clean the home office.

Not quite. They do have to work for their salary and have a job description etc. If challenged they will likely to argue hard that these wives had a role. However £30k is not a nominal sum and you would expect much more than bag carrying or tidying the home office desk.

I thought they were cracking down on this well known wheeze. However, now this has ended and with the accounts signed off, the problem may be seen as resolved....

A letter to HMRC may not result in anything visible, or possibly they may just keep it on file in case of future irregularities or future inspection.

The worst that can happen is they have to pay back tax and possibly a fine.

Frankly I would ask yourself what would enable you to sleep at night and whether it is any or your business. Only you can answer that. :A