"All over the world
tax revenues are under relentless attack from a highly organised tax
avoidance industry dominated by four accountancy firms: Deloitte &
Touche, PricewaterhouseCoopers, KPMG and Ernst & Young. They employ
thousands of individuals for the sole purpose of undermining tax laws
which does not create any social value, but enables corporations and
wealthy elites to dodge corporate tax, income tax, National Insurance
Contributions (NIC), Value Added Tax (VAT) and anything else that might
enable governments to improve the quality of life.
The loss of tax
revenues is a major cause of the current economic
crisis that is inflicting misery on millions of people. Tax avoidance
is part of the guerrilla warfare conducted by accountancy firms against
the people. Each year, about 30%-40% of the financial legislation
outlaws tax dodges dreamt up by accountancy firms. The UK tax tribunals
and courts hear around 11,000 cases and many of these relate to dodges
that have no economic substance. The UK is estimated to be losing
around £100 billion of tax revenues each year and a large part of
this is due to the activities of the Big Four accountancy firms.
Despite record number of millionaires, billionaires and levels of
corporate profitability, the UK tax take in 2010-11 added up to 37.2%
of the GDP, compared to 43% in 1976. Rather than challenging the tax
avoidance industry successive governments have shifted the tax burden
to less mobile capital, labour, consumption and savings, as evidenced
by higher NIC and VAT and the lowering of thresholds for higher rates
of income tax.
In the US, some
accountancy firms have been fined for facilitating tax
evasion and their partners have been sent to prison. They have paid
large amounts to settle allegations of bribery and corruption. Other
countries have fined them for operating price-fixing cartels. There is
little retribution in the UK. Despite judges outlawing their tax
dodges, successive governments have failed to investigate the firms, or
prosecute their partners. Instead, the partners of major accountancy
firms are given peerages, knighthoods, public accolades and government
consultancies, all funded by taxpayers. The same firms have colonised
regulatory bodies, fund political parties and provide jobs for former
and potential ministers. This penetration of the state has bought them
political insurance and their
anti-social
practices continue to inflict enormous social damage".
P.O.
Box 5874
Basildon
Essex
SS16 5FR,
UK.
Price
£8.95 (UK post free)
European Union
(add £1.61 postage)
Rest of the
world (add £2.32 postage)
Elecctronic
copies - Worldwide £8.95
ISBN
978-1-902384-12-2
Published in 2011