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What you are saying about tax avoidance, trackers and pensions

This week's stories have provoked some passionate responses from FE Trustnet's readers. Here are some of the highlights...

By Joshua Ausden, News Editor, FE Trustnet Follow
Friday July 20, 2012


“I think you will find that 'tax accountants' are the ones who manipulate the HMRC rules – it’s time to stop blaming IFAs for all and look at others. If these schemes didn’t exist then IFAs could not use them! What is the HMRC doing allowing them if that's the case?” 
David Parkinson thinks IFAs are unfairly criticised for participating in tax-avoidance schemes 


“Excuse me but have I missed something – isn’t it an IFA’s job to advise on life, pensions and investments etc, not dodgy schemes invented by bent accountants and lawyers?” 
Alan Pear is less sympathetic


“Is it 'morally wrong' for a barrister to defend a client he knows is guilty? No, he works within the law to ensure the best result for the defendant. Sound familiar?” 
Manny Feek uses an interesting analogy with regard to IFAs’ involvement with tax-avoiding clients 


“This discussion revolves around two variables: performance and total costs. Since no one can know the future, performance going forward has to be judged on past performance – much of which may be down to luck. Costs are easier to quantify and make a big difference to long-term performance. But since it doesn't cost that much more to manage a portfolio of £5bn than one of £50m, you might expect larger funds to have lower management costs – but they seldom do.”
John Clarke wonders why active managers can’t make their funds cheaper 


“What a disaster investing is for the poor punter! What are we supposed to do? Plump for passives and trust we don't buy in to a market just before the drop, or choose the ‘best’ managers and hope that they really are skilful instead of lucky, or that they continue to be lucky?” 
"Poulter" says investors are being asked to pick the lesser of two evils 


“Passive funds are so clearly the answer in our efficient western markets where tracking error never seems bad enough to equal the high charges of active funds over the years. The Dobells of the world are not spotted in advance but by past performance and there are no guarantees for their future, just their high costs!” 
"Gini" is clearly a tracker convert 


“I don't think that pensions being low-priority for today's youth is anything new. Beer tended to win out the day in my youth too!” 
Ark Welder doesn’t think much has changed with regard to the apathy surrounding pensions


“The main thing is not to use pensions until you are sure you can afford to lose access. I have a few young people in investment ISAs and even some of them pay into their pension. Their regular savings are into an ISA then at the end of the year we look at their tax returns and pay a bit into a pension to help with other issues.” 
Financial adviser "Daniel" believes an ISA should be the priority for young investors



 
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Trev Jul 22nd, 2012 at 08:40 AM

Why dont people like the boss of selfridges, David Coultard, Lewis Hamilton as do many more British business and sport personalities that live in Monaco to avoid paying Tax. They're taking money from the British public or companies, so surely they should be paying tax back to the British public.

Reply
Tax This Jul 22nd, 2012 at 11:50 PM

Theyre taking money from the British public or companies? Expand on that please and explain exactly what you mean if you dont mind. Selfridges is a listed company and I doubt it's british owned. It does trade in the UK but it pays corporation tax on money it earns from the the UK. As for DC and LH, what are they taking out of the UK exactly?

Reply
TaxThat Jul 21st, 2012 at 02:41 PM

@Mr Pear: dodgy schemes and bent accountants? You're a well informed chap aren't you?

@Mr Parkinson: IFA's like every other professional should take responsibility for their actions. Extrapolating your theory I would say that if Parliament didn't try to tax people, tax accountants wouldn't try to avoid tax. And what HMRC are doing letting us continue is this: tax avoidance is legal. It's not for HMRC to judge in any event. It's for the Courts. Basic stuff mate.

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