Brexit: Taking back the power to avoid paying taxes
We recently spoke about how the Paradise Papers get to the heart of the case for Scottish Independence.
Simply put, in order to stop a coterie of elites usurping our political system to the detriment of the rest of us, we need to radically change the system. Scottish independence is the only viable method on the table to do this.
The Paradise Papers and similar recent leaks also highlight something else.
They highlight how many of those that funded and helped to spread the message about Brexit have been involved in tax avoidance.
Express owner Richard Desmond, Sun owner Rupert Murdoch, Telegraph owners the Barclay Brothers, Daily Mail owner Viscount Rothermere, alt right propagandist Steve Bannon, funder in chief Arron Banks, Brexit donor and privy-council member Lord Ashcroft, useful idiot Nigel Farage and many other key Brexiteers have all been implicated in tax avoidance schemes. The influential Leave.EU group was actually set up by a Gibraltar based company that specialises in facilitating tax avoidance.
One of the key messages of the Leave campaign, propagated by the people above, was about taking the power back from Brussels.
However, it appears they probably weren’t telling you the whole truth. What they actually meant was taking the power to avoid paying taxes back from Brussels.
You see, the EU was in the process of cracking down on tax-evasion via the Anti Tax Avoidance Directive. This was due to be implemented by member states by 01/01/2019.
The directive includes five measures that were set to make the tax avoidance of the Brexit cheerleaders more difficult to pull off.
The Five New EU Directives.
Controlled foreign company (CFC) rule: to deter profit shifting to a low/no tax country.
Switchover rule: to prevent double non-taxation of certain income.
Exit taxation: to prevent companies from avoiding tax when re-locating assets.
Interest limitation: to discourage artificial debt arrangements designed to minimise taxes.
General anti-abuse rule: to counteract aggressive tax planning when other rules don’t apply.
It is easy to understand why the rich tax-avoiding Brexit evangelists might want to leave the EU as these laws will make them poorer.
What about the impact of Brexit on the taxes the rest of us pay?
Well, the Institute for Fiscal Studies has recently warned that Brexit will cause the tax burden to rise to the highest level for 30 years.
This is fine if you are rich enough to avoid paying it but for the majority of us, who are already struggling with the higher cost of living, this is a massive problem. Once again, Brexit is turning out to be a con. A bunch of rich and powerful grifters have convinced the masses that it will be good for them to leave the EU. Yet Brexit is only good for those that were doing the convincing.
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