“I will find you and your money” announced Chancellor George Osbourne in 2011. He was speaking after negotiations with Swiss Banks about tackling tax avoidance. Tory millionaire Osbourne claimed that “Tax avoidance is morally repugnant.”
Of course he didn’t mean it. Because while the most vulnerable in society are suffering massive cuts to their incomes, multinational corporate giants are still getting away with billions in unpaid tax.
According to Tax Research UK we lose out on over £120bn in tax each year, enough to clear the deficit that politicians keep banging on about. Companies like Asda, Google, Apple, eBay, Starbucks and Vodaphone pay minimal tax on their massive UK profits. Cafe Nero hasn’t paid any UK corporation tax since 2008!
All this tax avoidance is done legally using loopholes that allow companies to divert their money to other countries where tax levels are much lower. Successive governments have failed to close these loopholes preferring to blame the unemployed, refugees and the EU for our financial situation.
Now a group of Independent traders in Crickhowell have found another way to force politicians to act. The group which includes the local coffee shop, bakery, optician, and book shop are exploiting the same tax loopholes by moving the town ‘offshore’.
“We were shocked to discover that the revenue generated by hard-working employees in these British high street chains isn’t declared”. Said Jo Carthew who runs Black Mountain Smokery in the town,” We do want to pay our taxes because we all use local schools and hospitals but we want a change of law so everyone pays their fair share.”
“Until now, these complicated offshore tricks have only been open to big companies who can afford the lawyers’ fees. But we’ve put our heads together, and worked out a way to mimic them.”
Everything the traders have proposed is legal and they have met with HMRC to discuss their plans.
Coffee shop owner Steve said “I have always paid every penny of tax I owe, and I don’t object to that. What I object to is paying my full tax when my big name competitors are doing the damnedest to dodge theirs.”
One of the town’s traders discovered that he paid seven times more in corporation tax than Facebook, which paid less than £5,000 in the UK last year!
They hope that their DIY tax avoidance scheme could go national and force politicians to act.
The story of the Powys tax rebellion is to be covered in a BBC documentary to be aired in early 2016.