06 April 2016

The Panama Papers

The leaking of 11 million files from a Panamanian law firm has already cost one national leader his job; the Icelandic PM was doing something pretty dodgy.

However, a thought occurred to me; aren't all these rich people doing exactly what others would do in their (hand-made) shoes - trying to preserve as much of their wealth as possible? In my country, the top rate of tax is currently 45% - and it's been higher recently - at just over £150,000.

If I was earning £300,000 a year as a self-employed person, I would pay £129,530.20 a year in tax and Class 2 National Insurance contributions. At three million, I'd lose nearly £1.4m to HMRC.

Is it any surprise therefore that people want to avoid that? They should be honest about it if they are of course; which is the bigger issue here.

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