SIR – The Government has any number of so-called tax incentives to support what it regards as worthwhile ideas. Thus the interest on Individual Savings Accounts (ISAs) (Graham Hoyle, Letters, May 1) is untaxed to persuade people to save a bit more.
Another supposedly worthwhile scheme allows tax rebates to encourage investment in the British film industry. But by means which are beyond human understanding, it has been manipulated by clever accountants to allow investors to get tax relief without actually paying anything to the film makers.
This has rightly been condemned by public opinion and found to be unlawful by the tax tribunal with the result that some ‘high net worth’ individuals have happily lost quite a lot of money.
Starbucks, on the other hand, have found that by buying their coffee at inflated prices and borrowing money from an associated company in a low-tax country, they can legitimately say that their UK business makes no profit.
These are the scandals which really upset the tax-paying public rather the avoidance Mr Hoyle describes on ISAs, whereby you can get a few extra pence for putting aside small amounts for your old age.
Brian Holmans, Langley Road, Bingley
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article