The Labour Party can ethically give tax advice – they’ve never written tax policy. Unlike the Big Four

Many of you will have heard that there has been a slight misunderstanding over the Labour Party helpfully dictating to wealthy donors the most tax efficient means of making a voluntary donation to them.

I, of course, would be the first person to speak out against tax avoidance, which is completely legal, were it the case in this instance, but I cannot see any of the signs of abuse that are present.

Firstly, the Labour Party, unlike the Big Four accountancy firms, have never been responsible for writing tax policy and legislation. It is therefore completely ethical for them to advise on various differences in tax treatments of donations to political parties because they obviously cannot be responsible for deliberately creating the loophole or leaving it open to exploit.

Were that the case, I would speak out against it, as would Labour Party member Margaret Hodge who has rightly called gamekeepers-turning-poachers “morally evilly repugnantly immoral evil-doers”.

Secondly, gifts of shares to political parties are specifically exempted by not actually being specifically mentioned in tax legislation. Therefore, we are left in no doubt that Parliament intended to leave open the possibility that a political party such as the Labour Party could approach a donor, tell them not to give them cash as they had originally intended and to give them shares specifically because it will save the individual tax and allow them to give the Labour Party more.

This intention does not extend to a political party like the Conservative party which appears to have not been the intention of Parliament at the time the Labour Party decided not close this loophole.

Thirdly, the Labour Party have not done anything illegal.

Fourthly, a State of Courage would want the Labour Party to have the money anyway. So it must be perfectly acceptable.

Fifthly, the Labour Party have not done anything contrary to the intention of the law. Unlike, say, Starbucks who charged Starbucks UK for coffee beans and intellectual property as if they were an arms-length company, which is completely not the intention and specific intention of the arms-length principle.

There intentionally isn’t any specific anti-avoidance tax rules on donations to political parties, so we must assume that the intention of the Big Four accountancy firms in leaving this loophole open was to allow Parliament room to intend the Labour Party to receive gifts of shares in a tax efficient manner.

Sixthly, I have asked the President of Researches for Taxes UK who says that he has consulted the Justice for Taxes Network’s Supreme Tax Adviser and Negligence Law Expert, who checked to see if he has said in a blog post (which indeed he now has) that there is nothing wrong with this for all the reasons I have set out above.

This undoubtedly authoritative tax expert says authoritatively:

Firstly, the Labour Party, unlike the Big Four accountancy firms, have never been responsible for writing tax policy and legislation. It is therefore completely ethical for them to advise on various differences in tax treatments of donations to political parties because they obviously cannot be responsible for deliberately creating the loophole or leaving it open to exploit.

Given that such credible and reliable tax experts are in agreement with me I see no further point discussing this any further.

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One thought on “The Labour Party can ethically give tax advice – they’ve never written tax policy. Unlike the Big Four

  1. Your blogs continually include a decent amount of really up to date info. Where do you come up with this? Just declaring you are very creative. Thanks again

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