Tax Evasion and Tax Avoidance

Interested to read in the Evening Standard a confusion between tax evasion and tax avoidance. It's important because it kind of relates to the law, without which the country would no doubt descend into anarchy.

Sebastian Shakespeare describes plumbers working for cash-in-hand, and Amazon's cunningly-contrived tax status, as "Tax avoidance" - thus putting them on the same level, give or take the amounts of money involved. Well in the law of the land, these aren't the same.

A plumber working for cash in hand and not declaring his or her income is guilty of tax evasion. This is a crime. Amazon's current rate of tax payment (none, if you're interested) is not tax evasion. It's tax avoidance. Unless they're breaking the law, in which case it's evasion. Although, to be fair to Amazon, the money they pay to their warehouse and other workers, web designers and so on is income taxed, and the Amazonians then spend their money in shops, so it's not all bad.

You may think I'm a bit tetchy on this subject, but that's only because I am. Beaker (Cayman Islands) is a 100% legal offshore tax avoidance vehicle. It may be unethical, dodgy and mean. I may be fleecing the Beaker People to a degree that's unwise in the current weather conditions. But I'd hate to think it was illegal. That would be wrong.