Who am I? I have ‘homes’ at : ZDNet (US): Irregular Enterprise & Enterprise Alley ITPro (UK): Governance, risk & compliance AccMan: ‘Innovation for professional accountants’ IT Counts: ICAEW IT community and... TWITTER!!!!!!
Don’t be stupid “ An investment banker who used his wife’s and children’s names in tax evasions dating back to 1977 was sentenced today to 50 months in prison for tax crimes, including the first criminal conviction for not paying the nanny tax.” NYT: 2007
Offshoring We all want the Good Life - and it’s ‘over there’
Attitudes to tax Country Hate Don’t like UK ✔ France ✔ Germany US ✔ Spain ✔ Italy ✔
Attitudes to tax Country What it means UK Savvy - into avoidance ✔ France 27-30% GDP in shadow economy Germany Into avoidance, will evade US Heavily into avoidance, sometimes dumb ✔ Spain Evasion = national sport, 25% in cash Italy 3 sets of accounts - go figure!
Remember : Tax is not just Income Tax but includes wealth tax and social security costs
UK is probably the best place to be max = 48%
France : ‘expensive’: effective tax rates ≈ UK but socsec is a killer = 61%
Spain : ‘expensive’: same as France (sort of)
Location, location, location In some European countries, it is simply not worth employing people as a person running a small business. THIS CAN MEAN IT IS NOT WORTH BEING IN BUSINESS AT ALL
Location, location, location Remember : If you choose to live in a country because of its lifestyle (like France/Spain/Switzerland), then be prepared to pay the price, especially if you are a high earner.
Location, location, location Remember : The overall tax cost of living in a country is NOT one figure but a combination of ‘taxes’ that include income/business tax, social security and mandatory pensions costs. Making direct comparisons is not easy. Therefore....
Oh shit! This is all way too complicated Therefore....