Friday, 21 February 2014


A UK media figure, BBC disk jockey and TV presenter Chris Moyles earned $1 million a year taxable income. He is far too elevated to pay tax, as only little people pay taxes, so he fraudulently pretended that he was also a second-hand car dealer, sent himself tax-deductible invoices for $1.5 million car dealing "losses" in 2007/08 and paid no tax. 450 London "high earners" did the same - on the advice of NT Advisors (NT stands for No Tax) who convinced the VIPs the false accounting was legal ("complex" but legal). Moyles paid these cowboy tax-planners $120,000 for their advice. Presumably the other 450 clients did the same - making $54 million in fees. It is almost a certainty that NT Advisors tried to pay no tax on the $54 million. Now Moyles must pay the tax he evaded, plus interest, plus penalties, plus legal and accountancy fees; probably for just that one year, by 2014 totalling $1 million. Assuming the other 450 VIPs earned similar amounts - that's $450 million dollars - plus NT Advisor's tax and interest and penalties, say, $40 million, means the UK Treasury gets a much needed $490 million. UK tax collections are way below target in January 2014.

And, presumably, the 450 clients will sue NT Advisors, who in turn will claim the damage on their Professional Indemnity Insurance policies. Good old Lloyds of London will cough up. Maybe! Whether the clients and professionals will be imprisoned for False Accounting or Fraudulent Conspiracy, as happens in America I SAY AVOIDANCE - YOU SAY EVASION  remains to be seen. After all, Justice Must be Seen to be Done. We cannot have one law for the rich and another for the poor; particularly in tax-law. 

"They" are all at it. Given the scale of this one uncovered fraud of nearly half-a-billion dollars, for just one tax year, among 450 otherwise respectable pillars of the community; it is little wonder that even The Guardian shies away from publishing letters such as mine, below, that point out that no-one, including major companies, can send themselves invoices (usually from tax-havens) to reduce their UK taxable profits. It is time for a Tax-Truth-and-Reconciliation global task-force to unearth the few million souls who have defrauded their homelands of the $32 trillion hidden in tax-havens - and time to bring it home, invest it, and re-boot the world economy. Like blood in the body, money must circulate to keep communities healthy; it is no use frozen in false names by the paranoid, sociopathic super-rich in tax-havens.

Letter to the Guardian - 20 FEB 2014.

Many congratulations to The Guardian, The Midcounties Co-operative, Richard Murphy and the other experts “at the table” for designing and promoting the “Fair Tax Mark to reward tax justice” – Guardian 20th Feb 2014. Execution pivots on the vexed question of what is “the right amount of tax” for businesses to pay, in the regions where their sales and revenues actually occur. Honest auditors are highly paid to report correct sales figures, from which taxable profits can be (and internally are) accurately calculated. The real data for levying Fair Tax exists. However, the evasive businesses send internal invoices, usually retrospectively, from associated firms, to siphon the profits to tax-havens. These transactions (transfer-pricing; loan interest; management fees; royalties; dividends to wives in Monte-Carlo etc.) always have been and are illegal in tax law in all OECD regions – contrary to your bland statement “These companies aren’t breaking any laws – they are simply taking advantage of the complexity of the corporate tax system”. They are not complex; and they are criminal false accounting. Most tax experts work for or with auditors who since 1980 have signed false audit certificates and submitted false tax returns to reduce tax, as happened at Parmalat and ENRON, the latter case killing Arthur Andersen. In the 34 years 1980-2014, many top accountants and directors have become so habituated to creating false-invoices, increasingly unquestioningly approved by politically bullied local tax collectors, that the accountants convince themselves and their trainees that they are acting legally. They are not now and have not been legal. They were and are guilty of fraudulent conspiracy to evade tax.  Tax collectors still apply tough penalties on local people who send themselves “tax deductible” invoices. Try it yourself if you doubt me. We do not want to see hundreds of top executives jailed for fraud (who signed all the false Balance Sheets and Tax Returns?) but the UK must recover the estimated £2 trillion (8 million jobs for ten years) of tax-evasion-capital-flight gouged from our UK businesses over the past 30 years. It is vital to apply long established tax laws, as are applied to small businesses, to all UK trading since 1980, in order to claw-back past tax deductibility and to repatriate the massive illicit offshore funds, frozen in 70 or more tax-havens. As the Guardian revealed last year, there are 130,000 anonymous bank accounts in the British Virgin Islands (BVI) alone; just one of 70 criminal tax havens. Then, all nations will follow the UK lead, refill their public treasuries and re-boot the world’s economy. Latest estimates from Wall Street and the OECD are from $21 to $32 trillion hidden offshore – it all got there through false accounting. Fair Tax accounting will bring it home.

Noel Hodson, Oxford
Founder - McVeigh Hodson Blackstone Franks Accountants

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