What comes to mind when you hear the popular saying that the ‘rich keep getting richer while the poor keep getting poorer?- you probably think of how the rich takes decisive actions towards gaining wealth while the poor keep running a rat race as Robert Kiyosaki posited. But what if the rich are involved in underhand dealing? In this view that we pose the critical question: Are the millionaires not paying their fair shares in tax?
However you wish to look at it; it will be helpful to lay out some focal facts.
- A report on Independent has it that wealthy people are being favoured by the HMRC hence they get to pay less.
- In 2016, millionaire tax avoiders hold over £ 170bn in tax havens and n turn cost the government to lose revenue in the tuneof £ 56bn.
- About 1% of UK’s citizens are millionaires.
- According to a report in Financial Times, the wealthiest 1% of income taxpayers pay something in excess of a quarter of the total income tax which is a sizeable chunk of the revenue of the government.
So, where do we go from here?
From the last point [on the fact list], it could be drawn that millionaires are paying fair share of tax – if not more. However, one has to tread on the path of caution as there could be some other areas through which a few millionaires have etched out a leeway to dodging paying tax.
Ensuring that millionaires pay their fair share of tax
We cannot outrightly conclude that all millionaires are paying their fair shares of tax. This is why the onus falls on the regulatory agencies [as well as the government] to put in place certain checks and balances to monitor the activities of millionaires in connection to the payment of tax. The could limit and/or forestall to use of tax havens, Shell Company and facilities [such as capital gains tax and trust deeds] to evade tax. Furthermore, stiff(er) sanctions should be ‘hammered’ on any erring party that fails to comply with the laid-down tax laws.…