David Prosser: If we chastise Vodafone, then many married couples deserve it too

The Business View

Share
Related Topics

Two words, but a world of difference. Evading tax means not paying HM Customs & Excise what you owe it and is illegal. Avoiding tax means organising your affairs so as to pay as little tax as possible and there is nothing wrong with it. On the contrary, it's very sensible, which is why everyone from the country's biggest companies to ordinary families do it.

Most people will have every sympathy with the UK Uncut campaign. The idea that big business is getting away with avoiding billions of pounds of tax at this time of austerity offends every principle of fairness. Appointing Sir Philip Green, whose family's tax arrangements are well documented, as a government adviser appears to rub salt into the wound.

Still, UK Uncut has picked the wrong targets for its protests. In minimising its tax bills within the confines of the law, Vodafone and Sir Philip are doing nothing different from, say, a married couple who choose to pool their savings in the bank account of the spouse on the lower tax rate. The sums saved may not compare, but the principle is the same.

In fact, were Vodafone not to behave in this way, it might find itself subject to another protest – from its shareholders.

No, a better target for UK Uncut would be the Treasury itself. It maintains a tax system full of loopholes that those with well-paid accountants find easy to exploit.

It would be a simple matter to change the law so that big business paid more tax, so why hasn't the Treasury done so? Well, one reason is that companies could threaten to move their headquarters elsewhere or close less profitable operations. The rest of us do not have this option, so maybe it's time we called their bluff.

React Now

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
iJobs Job Widget
iJobs General

VB.Net Developer - £40k - Surrey - WANTED ASAP

£35000 - £40000 per annum + competitive: Progressive Recruitment: .Mid Level V...

Digitakl Business Analyst, Slough

£40000 - £45000 per annum + Competitive Benefits: Progressive Recruitment: Dig...

Mechanical Estimator: Nuclear Energy - Sellafield

£40000 - £50000 per annum + Car, Medical, Fuel + More!: Progressive Recruitmen...

Dynamics NAV Techno-Functional Consultant

£50000 - £60000 per annum + benefits: Progressive Recruitment: An absolutely o...

Day In a Page

Read Next
'Our media are suffering a new experience: not fear of being called anti-Semitic'  

Dress the Gaza situation up all you like, but the truth hurts

Robert Fisk
David Cameron (pictured) can't steal back my party's vote that easily, says Nigel Farage  

Cameron’s benefits pledge is designed to lure back Ukip voters. He’ll have to try harder

Nigel Farage
Dress the Gaza situation up all you like, but the truth hurts

Robert Fisk on Gaza conflict

Dress the situation up all you like, but the truth hurts
Save the tiger: Tiger, tiger burning less brightly as numbers plummet

Tiger, tiger burning less brightly

When William Blake wrote his famous poem there were probably more than 100,000 tigers in the wild. These days they probably number around 3,200
5 News's Andy Bell retraces his grandfather's steps on the First World War battlefields

In grandfather's footsteps

5 News's political editor Andy Bell only knows his grandfather from the compelling diary he kept during WWI. But when he returned to the killing fields where Edwin Vaughan suffered so much, his ancestor came to life
Lifestyle guru Martha Stewart reveals she has flying robot ... to take photos of her farm

Martha Stewart has flying robot

The lifestyle guru used the drone to get a bird's eye view her 153-acre farm in Bedford, New York
Former Labour minister Meg Hillier has demanded 'pootling lanes' for women cyclists

Do women cyclists need 'pootling lanes'?

Simon Usborne (who's more of a hurtler) explains why winning the space race is key to happy riding
A tale of two presidents: George W Bush downs his paintbrush to pen father’s life story

A tale of two presidents

George W Bush downs his paintbrush to pen father’s life story
Restaurateur Mitch Tonks has given the Great Western Pullman dining car a makeover

The dining car makes a comeback

Restaurateur Mitch Tonks has given the Great Western Pullman dining car a makeover
Gallery rage: How are institutions tackling the discomfort of overcrowding this summer?

Gallery rage

How are institutions tackling the discomfort of overcrowding this summer?
Louis van Gaal has £500,000 video surveillance system installed to monitor Manchester United players

Eye on the prize

Louis van Gaal has £500,000 video surveillance system installed to monitor Manchester United players
Women's rugby: Tamara Taylor adds fuel to the ire in quest to land World Cup

Women's rugby

Tamara Taylor adds fuel to the ire in quest to land World Cup
Save the tiger: The day America’s love of backyard tigers led to a horrific bloodbath

The day America’s love of backyard tigers led to a horrific bloodbath

With only six per cent of the US population of these amazing big cats held in zoos, the Zanesville incident in 2011 was inevitable
Samuel Beckett's biographer reveals secrets of the writer's time as a French Resistance spy

How Samuel Beckett became a French Resistance spy

As this year's Samuel Beckett festival opens in Enniskillen, James Knowlson, recalls how the Irish writer risked his life for liberty and narrowly escaped capture by the Gestapo
We will remember them: relatives still honour those who fought in the Great War

We will remember them

Relatives still honour those who fought in the Great War
Star Wars Episode VII is being shot on film - and now Kodak is launching a last-ditch bid to keep celluloid alive

Kodak's last-ditch bid to keep celluloid alive

Director J J Abrams and a few digital refuseniks shoot movies on film. Simon Usborne wonders what the fuss is about
Once stilted and melodramatic, Hollywood is giving acting in video games a makeover

Acting in video games gets a makeover

David Crookes meets two of the genre's most popular voices