Ethics of tax planning

[Martinus]

I find it reasonable to set up your affairs in a way to pay the least legal amount of taxes. Tax advisory is a normal profession here.

I don't see how that would be unethical as long as you only use legal means.

A lot of policy making here also revolves around tax breaks for certain behavior the state wants to support. So it is well published how you need to e.g. save money for retirement in the most tax friendly way.

That said corporate tax avoidance through complicated shell firms etc. doesn't seem to serve any societal purpose and I would not mind seeing it reduced. Go Vestager!

I agree - I think a lot of it needs a reform. But I don't believe you can hold it against a businessman that he or she uses legally available ways of reducing the taxes.

Exploiting negligence of mentally undeveloped individuals is indeed unethical, but I don't believe this should include the state.

[Josquius]

"Legally available" how?
It's there and clearly highlighted and well known, designed to b a way to reduce taxes for valid reasons?
Or it's a shady loop hole that requires jumping through a bunch of hoops that nobody would ever use for legitimate reasons?

[Richard Hakluyt]

I'm strongly in favour of various tax loopholes being closed. However, the onus can hardly be on the taxpayer to divine the intent of legislators when they produced their (perhaps badly-written)  tax codes. It is either legal or it isn't, a simple binary position.

[Hamilcar]

I find it reasonable to set up your affairs in a way to pay the least legal amount of taxes. Tax advisory is a normal profession here.

I don't see how that would be unethical as long as you only use legal means.

A lot of policy making here also revolves around tax breaks for certain behavior the state wants to support. So it is well published how you need to e.g. save money for retirement in the most tax friendly way.

That said corporate tax avoidance through complicated shell firms etc. doesn't seem to serve any societal purpose and I would not mind seeing it reduced. Go Vestager!

100% agree.

[The Brain]

"Legally available" how?
It's there and clearly highlighted and well known, designed to b a way to reduce taxes for valid reasons?
Or it's a shady loop hole that requires jumping through a bunch of hoops that nobody would ever use for legitimate reasons?

Few legal systems list all the things you may do.

[crazy canuck]

Thread closed in light of some things said in this thread.

This is the CdM we know and love.

As to the question, it is not tax planning that is unethical but a tax structure which allows the most wealthy to pay the least in tax probably is.

[Martinus]

"Legally available" how?
It's there and clearly highlighted and well known, designed to b a way to reduce taxes for valid reasons?
Or it's a shady loop hole that requires jumping through a bunch of hoops that nobody would ever use for legitimate reasons?

This type of response shows a fundamental misunderstanding of how tax planning works.

What's a "shady loop hole"?

[crazy canuck]

"Legally available" how?
It's there and clearly highlighted and well known, designed to b a way to reduce taxes for valid reasons?
Or it's a shady loop hole that requires jumping through a bunch of hoops that nobody would ever use for legitimate reasons?

This type of response shows a fundamental misunderstanding of how tax planning works.

What's a "shady loop hole"?

I assume he is referring to the fact that there is often a fine line between effective tax planning and non compliant structures.  Of such things tax litigators make their living.

[Ed Anger]

I grab everything not nailed down.

[Hamilcar]

I grab everything not nailed down.

Note to self:
* nail everything down.
* purchase more nails.

[CountDeMoney]

Ed's already nailed everything that moves.

[Hamilcar]

Ed's already nailed everything that moves.

I imagine that there's a dead zone around Casa Ed similar to the forests around Chernobyl.

[Ed Anger]

Ed's already nailed everything that moves.

My avatar says it all.

[Hamilcar]

Ed's already nailed everything that moves.

My avatar says it all.

You have tiny chinadoll hands? 

[Ed Anger]

And a cheetos like complexion.