A rant about the HMRC scandal

Today's papers are full of the latest tax scandal. Big businesses apparently have a "cosy" relationship with HMRC and are apparently benefiting from generous agreements which effectively cut the tax they owe to the country. In a world which is increasingly asking for transpareny and fairness, HMRC won't publish the deals they have made with various big companies.

£25bn is the figure mentioned the most.

I am not surprised.

This so called government is friendly with big business. They need them for funding their party costs. Banks, big businesses, high net worth individuals. They have never had to suffer at the hands of the Tories, and didn't have to suffer much under the Labour party either.

No, the target for the government in its cuts, and now, it is evident, in its tax decisions (because although the inquiry into this was done by MPs you have got to be kidding me if you think that the government doesn't authorise all this) are the small businesses and the little people. You and me.

If I wander in to my local tax office and ask for a reduction in tax or that I can pay it back at some later, undetermined date, with no interest, you'd hear the echoes of the laughter from the four corners of the country.

Small business go under every day, crippled by tax. They don't get a break.

We have the argument that if the big businesses and the banks don't get given an easy time of it they will go elsewhere. But Britain is one of the best places to be in business in Europe (big business that is). They won't go anywhere. Does anyone really believe that the City banks will one day pack up their stuff and move their HQ elsewhere? Where? Frankfurt? Ha! Tax alert! Some off shore place? Well for a start they'd have to be very careful to remain within the financial trading laws of each of their markets and secondly, where would they get the staff? Mumbai? Lots of banks moved stuff to Mumbai for the cheap labour and many are already moving operations back because it just didn't work out.

I hope someone, somewhere will stand up to the HMRC and expose them for their cozy relationship. Sorry, did I say cosy? That's what the press are calling it. The word I'm really looking for is CORRUPT. Mafia style corruption for the very very rich.

But they won't. The so-called government has already issued a statement saying that they have full confidence in the HMRC. Of course they do. Because, honestly, why would they care? They much prefer attacking the disabled and the ill, libraries and your child's education, in exchange for peanuts, than going after their source of funding the big businesses. Because, let's face it, the little people can't fight back. They just have to sit there and take every little bit of unfairness that is thrown at them.

While the bankers will possibly have slightly smaller bonuses this year. And those billions that your country is owed in tax will be used for other things. Like, erm, bonuses. Not for the salesperson in the local Vodaphone shop. They may well be told they have a pay freeze on or that bonuses just won't happen this year because of the recession. The bonuses go to the élite at the very top. Shareholders get some nice dividends. And, you know what? If they are forced to pay the up to £6bn outstanding on their tax bill, you know what Vodaphone will do then? Use it as an excuse for a pay freeze. Blame the recession.

Does no-one else agree that it all seems to be a little too easy for the big companies?

There is a fine line between being a good place for companies to do business and to be a complete pushover. And if these reports are true, and I suspect the surface has only been scratched a little, the UK is a pushover. At least the tax people are. Aided and abetted by that government no-one really voted for. But remember, we really are all in it together.

PS - your train fares are going to go up by over 5% soon. Yes, faster than the rate of inflation. Yes, again. Thanks Dave.