'We need a tax avoidance principle, not more rules'

Richard Murphy, an accountant who writes the blog Tax Research UK, has said that the Government needs to use its common sense and root out people whose tax bill does not match their earnings. Commenting on Jimmy Carr's tax arrangement (which he has vowed to change) he said:

There is a mismatch between economic reality andthe way [income] is being taxed. When that happens the Revenue should be ableto say: we are going to ignore all the artificial [tax avoiding] steps and instead tax theincome ... Whenever you put a rule in place the accountants find a way to break the rules. What we have to say is: rules are not good enough. We need a principle that lets us say (tax avoidance) is wrong.

– Richard Murphy, Tax Research UK

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Carr apologises for tax scheme

The comedian Jimmy Carr has apologised for using a tax avoidance scheme. David Cameron told ITV News yesterday Carr's tax arrangements were "morally wrong" - but today refused to comment on singer Gary Barlow's tax affairs.