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Home Business & Finance Taxes How much would my tax rate go down if everyone else paid what was due
Business & Finance

How much would my tax rate go down if everyone else paid what was due

I know that a lot of tax is fiddled out of the exchequer by dodgy practices: people claiming to be subcontractors when they are actually employees, overclaiming of expenses, personal use of company assets, cash-in-hand payments, use of off-shore accounts etc. There must be an estimate of the total lost this way. How much is it? More to the point, if all these practices were eliminated (together with the costs of trying to police them) how much could the basic rate of tax be reduced and still allow the total tax revenue raised to be the same?
6 Comments


Jon
Votes: +0

I saw a report in the press about 2 years ago which put the figure at about 8 - 10%. I'm afraid I can't recall any full reference.

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ALISTAIR M
Votes: +0

Nobody knows because there's no accurate way of knowing how many people are avoiding tax. By it's very nature, it's a hidden figure.



As another person mentioned, even if everybody coughed up, it probably would go down anyway. More likely health and defence (and maybe transport) would be a bit better funded.

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Perfectly Flawed
Votes: +0

People will stop fiddling their taxes when the politicians stop fiddling their expenses!

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knowital...
Votes: +0

It will never be reduced...Gordon Brown will be rubbing his hands with glee at all the 'extra' revenue he can waste.

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nkcliff
Votes: +0

it would never be reduced

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oldgrump...
Votes: +0

There's no way we shall ever see the figures but the overall amount must be tremendous.

It starts as low as the little man who cleans your windows for instance, who just puts your cash into his back pocket and the question of tax accounting never arises. It is impossible to police such actions.

However, this is a drop in the ocean, compared with the amount of cheating on the grand scale that goes on by the very rich.

It seems unbelievable to me that the more money people have, the more they want to steal from the rest of us. This is the selfish society in which we live nowadays.

One thing is certain, that if all this revenue could be collected, tax levels for the more ordinary folk could reduce dramatically.

It will never happen though, as the country is run, generally speaking, by the rich, who will obviously never disclose their own fiddles.

I wonder whether MP's pay tax on the obscene allowances they seem to claim - but that's another story !!

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