Latest news with #taxavoidance
Finextra
3 days ago
- Business
- Finextra
Checkout.com billionaire founder quits London for Monaco
The billionaire CEO of payments processor Guillaume Pousaz has switched his country of residence from the UK to tax haven Monaco. 0 Switzerland-born Pousaz, who founded in 2012 and is now worth an estimated $6 billion, is making the move just a year after arriving in London from Dubai, according to the Telegraph. There is no indication that the company's London headquarters are affected by its boss's move. The switch sees Pousaz avoid changes to the UK's non-dom regime and increased taxes on capital gains, which were introduced by Chancellor of the Exchequer Rachael Reeves as part of last year's Budget. He is not the first of the super-rich elite to abandon the UK since the changes: Goldman Sachs' vice chairman in Europe, Richard Gnodde, quit London for Milan earlier this year, while steel giant Lakshmi Mittal is also rumoured to be leaving. provides merchants with a single platform combining payments, fraud monitoring and analytics. It counts big names such as Alibaba, Ikea, Remitly and Wise among its clients. In 2022, the firm hit a $40 billion valuation on the back of a whopping $1 billion Series D funding round. The firm subsequently saw its valuation fall during the post-pandemic period but is targeting full-year profitability in 2025 after a strong finish to 2024 that saw 45% year-on-year net revenue growth in its core business.
The Guardian
3 days ago
- Business
- The Guardian
The super tax debate is divorced from reality – and more proof that Australia's tax system is built for the rich
The unhinged criticisms to changes in superannuation make more sense when you realise that Australia's entire tax debate is geared to ensure rich, wealthy people and companies get richer and wealthier. The government's proposal to reduce the tax concessions on earnings on super balances above $3m has been the ultimate case in point. It will affect only 0.5% of people with super and would take many decades of governments not increasing the threshold to affect anything close to even 10% of people, and yet you would think the government is about to seize the means of production. So divorced from reality is some of the commentary that the Australian Financial Review thought presenting a scenario where someone's super grew $1.18m in one year to $3.18m was a winning argument against the tax because that person would be required to pay (gasp!) $1,528 in tax. The new argument is that the tax is bad because people will just find other tax rorts to make use of. (Great, let's go after those as well!) Because avoiding paying tax is pretty much the point of the system for wealthy individuals and large companies. For example, right now, numerous commentators who are against the changes to super are also saying we need to cut company tax to ensure competitiveness. Less mention is made that many large companies pay little or no tax, including in some of the most profitable sectors in Australia. My colleagues at the Australia Institute found that from 2014-15 to 2022-23 Queensland LNG projects delivered $310.1bn total income for gas companies but they paid just $966m in company tax – or just 0.3% of total income (and all of that was paid by just one company). If the graph does not display click here When huge multinational companies are able to earn such huge incomes but pay bugger all tax, the problem that needs to be addressed is not that our 30% company tax rate is rendering Australia 'uncompetitive'. Yes, we need to reform our tax system. But suggest gas companies should pay more tax and the chin-scratchers will say 'hmmm not like that, something, something Hawke, Keating … bipartisanship! That's because most commentary about our economy values profits as sacrosanct and more important than wages: If the graph does not display click here The same applies to individuals – wealthy ones matter more, especially when it comes to superannuation. We're told the real evil is taxing 'unrealised capital gains'. These are the increases in the value of the assets held in your super that you have yet to sell (or 'realise'). And look, I can understand how bad it would be. Imagine if, for example, Centrelink had a record of every share you owned and every six months calculated their value, or if you had to let Centerlink know if the value of your non-financial assets went up by more than $1,000. Outrageous! Unprecedented! Communism! Oh wait, sorry, actually that's what people on the age pension already have to do. We have a system where it is considered right that the poorest people in Australia are penalised if their assets go above $314,000 but where parts of the media come out against a proposal that if someone's super goes up $314,000 in a year from $3m they should pay $4,462 (1.4%) in tax. Please. The only reason there is so much outrage over this is if the rich and vested interested are annoyed people might realise just how big of a rort they have going. Currently these massive unrealised capital gains in super can keep going up and people pay no tax on them (unrealised, you see!) and then when they are retired they can sell them (ie realise them), and then pay … errr zero tax. Under these changes they would have to pay 15% on the share of earnings above $3m. Yeah, end of times. Heck even normal capital gains outside of super gets a great deal. If you have held an asset for over a year you will get a 50% tax discount on the profit. Earn $250,000 in capital gains, you get $125,000 tax free. Earn $250,000 in income, you get $18,200 tax free. Little wonder the rich love capital gains. The 0.2% of taxpayers who make $1m each year account for 41% of all capital gains: If the graph does not display click here The average salary of people with an income of $1m or more is around 16 times the average of people earning less than $100,000; the average capital gains is 234 times larger: If the graph does not display click here The very rich, their media supporters and financial advisers are worried we might start wondering how much revenue is being lost each year from giving them these tax breaks. Well, we know the answer – in 2025-26 around $33bn in tax breaks for capital gains tax and superannuation go to the richest 10% – or around two-and-a-half times what it would cost to fund dental in Medicare: If the graph does not display click here So here we are – tax reforms meaning companies that pay bugger all tax demanding cuts in the company tax rates, and the richest 0.5% demanding they not get a slightly lower tax break on the super earnings. Don't be fooled into thinking they are caring about you. Instead think of what could be done if Australia's tax system was better designed – better schools, better hospitals, better infrastructure. Right now, Australia's tax system works to give the wealthiest in society the smoothest of rides. These super changes will force them to go over a very small speed bump. They should be supported and they also should be just the start. Greg Jericho is a Guardian columnist and policy director at the Centre for Future Work
The Sun
19-05-2025
- Business
- The Sun
Crypto holders instructed to provide details to platforms as HMRC clamps down on tax avoidance
HMRC is ramping up pressure on cryptocurrency users with the introduction of new measures aimed at curbing tax avoidance. From January 1, 2026, individuals buying and selling cryptocurrencies like Bitcoin and Ethereum will need to provide their personal information to the platforms they use. 1 The move is designed to clamp down on tax avoidance and ensure that individuals and businesses are paying the correct amount of tax on their crypto dealings. Users will need to provide their name, date of birth, address, and national insurance number (or tax identification number for non-UK residents). Businesses dealing in cryptocurrency will also have to share their company information. The new regulations mean that platforms will be obliged to collect and report data on every transaction, including the amount, the type of cryptocurrency, and the nature of the transaction. This data collection will give HMRC a much clearer picture of crypto-related income and potential tax liabilities. Platforms that don't follow the new rules could be fined up to £300 per user for providing incorrect, incomplete, or unverified information. In the UK, you need to report crypto earnings to HMRC because any profit you make from selling, exchanging, or using cryptocurrency can be subject to capital gains tax (CGT) or income tax. You're liable to pay CGT on crypto when you dispose of it (e.g. sell it, trade it, gift it) and make a profit that exceeds your annual CGT allowance, which is currently £3,000 a year. The amount of CGT you'll pay in the UK depends on your income tax band. If you're a basic rate taxpayer, you'll pay 18% CGT on those profits. Four bombshell clues in hunt for elusive Bitcoin founder Satoshi Nakomoto revealed in doc - & signs he could be BRITISH If you're a higher rate taxpayer, you'll pay 24% CGT. Even with new data sharing between platforms and the tax authorities, you must still complete a self-assessment tax return if: Your total taxable gains from cryptoassets exceed the annual tax-free allowance (£3,000). You receive cryptoassets as part of your employment, but income tax and national insurance haven't been deducted through PAYE. Your total income, including earnings from crypto-related activities, is higher than the annual tax-free allowance. The latest move is part of a wider effort by HMRC to tackle tax non-compliance in the digital economy, following similar measures targeting income generated through online platforms such as Airbnb and Vinted. Seb Maley, chief executive of tax insurance provider Qdos, said: "HMRC is casting its net far and wide as it looks to crack down on suspected tax avoidance among cryptocurrency holders. "By collecting the personal information of those buying and selling crypto - along with the values being exchanged - HMRC will know how much tax should be paid on these assets. "In simple terms, if the income a taxpayer declares on their self-assessment tax return doesn't match up with the amount reported by these platforms, HMRC has the information it needs to launch a tax investigation." What is cryptocurrency? Cryptocurrencies differ from physical currencies, such as the pound. They are created using blockchain technology and part of their appeal is that they are not controlled by governments or a central bank, such as the Bank of England. It means the currency can be used to transfer wealth outside of the traditional banking system, making it easier to cross borders or stay anonymous when moving wealth. Bitcoin is the leading cryptocurrency but its rise has helped other cryptocurrencies also grow in value, such as Ethereum. In recent years, more mainstream companies and institutions have invested in cryptocurrency, and part of the recent rise in value is based on President Trump 's favourable views on cryptocurrency. The dangers of investing in crypto HERE are five key risks to keep in mind when investing in cryptocurrencies: Consumer protection: Many cryptocurrency investments promising high returns are not fully regulated, apart from anti-money laundering rules. This means you may have limited protection if things go wrong. Price volatility: Cryptocurrency prices can rise and fall dramatically, making it easy to lose money. It's also difficult to reliably determine their value. Product complexity: Crypto products and services can be complicated, which makes it hard to understand the risks. Plus, there's no guarantee you can convert your cryptocurrency back to cash—it depends on market demand and supply. Charges and fees: Crypto investments often come with high fees, which can eat into your returns. These fees are often higher than those for regulated investments. Marketing hype: Some firms exaggerate potential returns or downplay the risks involved. Be cautious of flashy promotions. It's essential to only invest in cryptocurrency if you fully understand how it works and the risks involved. Remember, there's no guarantee you can exchange it for real cash, and its value can change drastically in a short time. If something sounds too good to be true, it probably is. Always double-check with a trusted friend or advisor if you're unsure. Be wary of glowing websites or perfect reviews - fraudsters often create convincing scams. For tips on avoiding scams, check out our guide. How do people invest in crypto? In the UK, you cannot invest in cryptocurrency funds through stocks and shares ISAs, general investment accounts, or pensions due to regulations. If you want to invest in Bitcoin or other cryptocurrencies, you'll need to use specialist trading platforms like Coin Bureau or PlanB. These platforms allow you to own crypto as a financial asset, though some accounts may not let you spend it. Crypto businesses in the UK must register with the Financial Conduct Authority (FCA). To check if a business is registered, visit the Financial Services Register at There's also a list of unregistered businesses at Businesses on this list may be operating illegally. If you don't want to invest in cryptocurrencies directly, you can still gain exposure to the market by investing in companies involved in the crypto space. For example, you could invest in companies that hold Bitcoin or facilitate crypto trading. A popular option for UK investors is buying shares in MicroStrategy, a US company that actively invests in Bitcoin. Protect yourself from crypto scams CRYPTO investment scams are on the rise with reports more than doubling since 2020, according to the FCA. Fraudsters often advertise on social media and may use images of celebrities to promote scams. Or scammers may contact your directly through private messages pretending to be a reputable company. You could also come across scams by searching online through the likes of Google. Scam adverts typically link to professional-looking websites, where fraudsters may manipulate software to fake prices and investment returns. Once you've handed over money, scammers may act quickly, closing your account and taking your money. Or they may continue the pretence, to encourage others to invest and you might not realise it's a scam until you try to sell. Scammers are more likely to contact you out of the blue or pressure you to invest quickly. Firms offering crypto products in the UK must be registered with the FCA or have permission to promote them. The FS Register will show you which firms are registered, you can check it at
The Independent
17-05-2025
- Business
- The Independent
Tax avoidance is on the rise – and the rich are leading the way
It has taken the government spending watchdog to highlight what has long been suspected, that ministerial claims to be cracking down on tax avoidance come nowhere near the mark. Listening to them, and not only Labour but Tory ministers in recent years, you could be forgiven for supposing that Britain is a state where shielding wealth from the HM Revenue and Customs ' prying eyes is confined to the past. This was Rachel Reeves in her party conference speech last September: 'We will crack down on tax avoidance and tax evasion.' And again, in her spring statement, proclaiming the Treasury will tackle 'fraud committed by the wealthy, fraud facilitated by those in large corporations, and by individuals and companies who make it possible for others to hide money offshore'. Here is the Conservatives' Jeremy Hunt, when chancellor in 2023: 'We are against all fraud and all tax evasion, and we will continue to work very hard to reduce the tax gap.' To be fair, you could take your pick of any chancellor or shadow chancellor during the last few decades and you will find a speech lambasting tax avoidance schemes accompanied by a ringing pledge to bring them to an end. In its report, the National Audit Office (NAO) warns that the tax gap, the difference between the amount the HMRC believes is due and how much is collected, has risen, which 'raises the possibility that underlying levels of non-compliance among the wealthy population could be greater than thought'. This was evidenced by a fall in penalties imposed on the wealthy – defined as those earning more than £200,000 a year or with assets of more than £2m – from 2,153 notices totalling £16.2m in 2018-19 to 456 worth £5.8m in 2023-24. This was over a period when the number of rich individuals in the UK grew, from 700,000 in 2018-19 to 850,000 in 2023-24. This weekend's Sunday Times Rich List showcases how the rich generally become ever richer and brings the issue into annual sharp relief. Reeves announced tax rises aimed at the wealthy in her first Budget, including reducing the advantages enjoyed by non-doms, increasing capital gains tax and imposing VAT on private school fees. She also moved against winter fuel allowances, changed the inheritance tax rules for farmers and increased employers' national insurance. While this latter group are going ahead and their effects will be felt, it is clear from the NAO's findings that the wealthy have ways to escape what was aimed at them. This does not include non-doms who are closely defined and the code that applies to them is simply applied. The reaction of many of the non-doms has been to leave the UK for other countries which are only too glad to welcome them and the money they invest and the jobs they create. In this regard, Reeves is extremely short-sighted. No, it is more about the consistent failure of politicians to clamp down closer to home. They always talk a good game but their performance in office is lamentable. Alas, the same cannot be said for Reeves' quick hits of winter fuel and the rest – the less well-off are easily clobbered and have no way out. There will likely be a repeat in Reeves' next budget, due in the autumn, as the softening-up exercise is well underway, with signals appearing suggesting extra money must be found to pay for public services and heightened defence commitments. Brace yourselves for further tax increases is the message as we head into the summer. As well as possessing the ways, the wealthy have the means. It does not take rocket science or even the spending of more than a few minutes to gauge the scale of the UK industry devoted to avoiding tax (evading is illegal and is therefore not so brazen). There are advisers galore, all willing to engage in what is euphemistically called 'tax efficiency' for a fee. Those with the largest pots of cash can avail themselves of impenetrable trusts arranged for them in the Channel Islands, Isle of Man and further afield in the likes of Gibraltar, Cayman Islands and British Virgin Islands. Bizarrely, given the 'can do, will do' boasts about launching renewed tax drives against the UK wealthy, all the places where UK firms boast of maintaining offices and connections are ours; they are UK-protected. Nothing meaningful is ever done to curb this offshore trade. Along with tourism, it represents a lucrative source of income. Better it occurs, reasons the Foreign Office that oversees them, than they suffer and come cap in hand for London's financial and welfare support. In her Budget, Reeves provided additional funding for HMRC that specifically included tackling offshore non-compliance. But in its report, the NAO urged ministers to redouble their efforts to secure more of the money owed to the Exchequer. Billions of pounds, concludes the watchdog, are going unpaid each year. Additional steps were required to make sure the wealthy paid their fair share. That did not deter a spokesperson for HMRC from still insisting in relation to the NAO report: 'It's our duty to ensure everyone pays the right tax under the law, regardless of wealth or status. The government is delivering the most ambitious ever package to close the tax gap and bring in an extra £7.5bn for public services per year by 2029-30.' So, we can look forward to the NAO scrutinising in the future and being satisfied, then? Do not count on it.
RNZ News
16-05-2025
- RNZ News
Wealthy Britons avoiding more tax than thought
United Kingdom correspondent Alice Wilkins spoke to Lisa Owen about the man arrested over a number of fires at properties connected to UK Prime Minister Sir Keir Starmer being due to appear in court and how UK police are going door to door in East London, in an attempt to track down the parents of three babies, all siblings, who were abandoned over a seven year period. She also spoke about how wealthy Britons are avoiding tax than what was thought, according to the country's watch dog. To embed this content on your own webpage, cut and paste the following: See terms of use.
