Paradise Papers

[Audidothat]

So I thought i’d put it out there, especially as Lewis Hamilton is implicated, the topic is now car related!

The question I have been asking myself is whether i’d do the same? If I carried a huge personal wealth, would I be open to a creative, legal way of keeping as much of it as I could.

At first, Yes, I think I would.

But then I think to have so much wealth I would have to be great at whatever it is I do and greatness is not just measured in coin but also the way you conduct yourself.

Maybe i’ll stay as I am for a while! Although it would be nice to have a bit more disposable income to help pay garages to find an elusive engine rattle in my 8 year old S8!

[pete-p]

Provided it's legal I see no problem with it. I think that most people in a similar situation would do what they can to protect their wealth, I know I do what I can to avoid paying more tax than I need to including owning a V8 pre 2001 tax change!

What Lewis has done sounds a little risky from what I've seen, the personal use side might catch him out.

[tintin]

This leak is just one example of how selfish we've become as a society over the last thirty years, post-Thatcher. It's rare these days - almost unheard of - for people to publicly talk about the value of supporting others or of society in general.

So we get stuff like this, where the default behaviour of individuals and organisations in our society is self-centred greed and avoiding paying one's fair share for the effective functioning and improvement of society. Not good, and not sustainable in the long run.

[mattylondon]

Originally Posted by tintin

This leak is just one example of how selfish we've become as a society over the last thirty years, post-Thatcher. It's rare these days - almost unheard of - for people to publicly talk about the value of supporting others or of society in general.

So we get stuff like this, where the default behaviour of individuals and organisations in our society is self-centred greed and avoiding paying one's fair share for the effective functioning and improvement of society. Not good, and not sustainable in the long run.

Top comment and well said. My thoughts exactly.

Just to add, I think the famous people outed in this latest leak (Hamilton, Bono et al.) have been thrown to the wolves by the press, just like Jimmy Carr was a few years back. Where as the likes of Apple sitting on $252 billion in untaxed offshore cash by exploiting Jersey's tax system is the biggest story here.... Corporation Tax Avoidance!! It's sad big global corporations don't pay their equal share to society. It may be fully legal, but where's the ethics? Say what you want about the EU, they are focused on the citizen rather than big business and are trying to implement a Europe wide corporation tax and putting an end to all the double Irish Dutch sandwich loopholes.

[Lee S]

Originally Posted by mattylondon

It may be fully legal....

and therein lies the rub !!!

[Audidothat]

Originally Posted by Lee S

and therein lies the rub !!!

Yep, Legality v Morality.

[The_Laird]

Originally Posted by Lee S

and therein lies the rub !!!

A whole load of things used to be legal: slavery; raping your wife; burning so called witches; apartheid. Legality is no guide to morality. These super-rich people are bleeding our civilisation and the rape of the working classes will, ultimately, lead to its decline.

[tintin]

Originally Posted by The_Laird

A whole load of things used to be legal: slavery; raping your wife; burning so called witches; apartheid. Leagality is no guide to morality. These super-rich people are bleeding our civilisation and the rape of the working classes will, ultimately, lead to its decline.

+1.

[tintin]

Originally Posted by mattylondon

Say what you want about the EU, they are focused on the citizen rather than big business and are trying to implement a Europe wide corporation tax and putting an end to all the double Irish Dutch sandwich loopholes.

Dead right - it's no coincidence that many of these loophole jurisdictions are UK-dependent territories that are exploited by either UK/US corporations or wealthy individual or businesses from outside Europe. In the main, attitudes in major European countries (i.e. not Lichtenstein/Monaco ) to this sort of behaviour are far less tolerant, and quite rightly so.

[Conquistador]

The hypocrisy of Bono, the odious worm, can't be a surprise to any of us but some news articles are painting a picture of the Queen sitting with her calculator working out where she can save a few per cent here and there which is ridiculous, of course she hasn't had personal involvement in this. In fact I think I'm right in saying that the Duchy of Lancaster is not subject to tax anyway but has voluntarily paid capital gains tax and since the early 90s, although sometimes a pitiful amount.

As for Lewis' jet, his company (registered in BVI) bought it for just under $27m in 2012. Thanks to the leak, we know that Appleby formed a VAT-registered leasing business on the Isle of Man for Lewis. That company leased the jet from the BVI-registered company and imported it to the Isle of Man. It was then leased again to a UK jet management company that provided Lewis with a crew - and which leased it back to Lewis and his Guernsey company, BRV Limited. All these transactions are seen as 'commercial' so they are eligable for a 100% VAT refund when the jet lands in the Isle of Man. The VAT bill in this case was £3.3m, paid on Lewis' behalf by an Isle of Man accountancy firm. So when the aircraft landed, the customs official simply skipped out the terminal and stamped a VAT-paid form to be kept on board the plane. This grants the plane “full and free circulation” throughout the EU. As soon as the VAT form is stamped, the plane can fly out.

Leasing documents in the leak show that Lewis' Guernsey company, BRV Limited, expected to use the plane two-thirds of the time, with him signed up personally to use the other third. EU and UK VAT rules state that refunds should not be granted in relation to private use of aircraft – but Lewis got a full refund because of the above web of companies and transactions. Companies that simply use planes for business are entitled to a VAT refund, but private individuals are not.

Morally wrong to most of us but all legitimate. As soon as one loophole closes, a decent tax planner will find another mysterious loophole to make the most of. You have to ask yourself, if you were an ultra high earner with £millions of assets, would you do the same? I know I would.