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GaryC - I do not think there is a proper answer to that. Some points:
What do you regard as tax avoidance schemes that should be closed? You say all schemes and that definition would include the following:
ISAs
Pensions
Ending separate taxation for husband and wife to prevent tax free transfers between them.
To somehow limit the ability of small businesses to incorporate
Ending taper relief and CGT allowances
Changing the tax status of a wide range of investment schemes.
To somehow restrict the freedom of businesses in respect of tax domicile etc....
Restrict the movement of people and capital
That is just a few off the top of my head. The problem is that changing any one of these has a cost to HMRC in the short or the long term as well as the potential for more tax revenues. In each case there is also a likely cost to the economy as well and in some instances would be devastating to businesses and to growth. Then there are issues of personal freedom and, dare I say it, fairness and human rights....
Now for tax evasion - this is the illegal kind and I certainly do not advocate people breaking the law. The problem here is that HMRC are always taking measures to combat evasion and when they do new counter measure are developed. It is an ongoing war.
It is also worth adding - the latter point is also true in respect of legal tax avoidance as well. It is like an arms race. It will always be the case for all the while we have a complex tax code and all the time it is getting more and more complex.
The answer is what Ross and I have been saying for a long time. Scrap the present tax system all together and bring in simple flat and low taxes. This eliminates a lot of the problems.
By focussing though on taxes and raising more revenue that way you are simply, with the present system, just compounding the problems we have.
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