Tax Relief

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Tax Relief

Because tax doesn’t have to be taxing. A less-than-serious look back at some of the quirkier tax stories from the past month.

Star Wars and tax laws

saber

The evil Emperor knows the importance of doing his Tax Return (of the Jedi) on time

Tax Relief is looking forward to watching the seventh instalment of its favourite tax-based space epic as much as the most ardent Trekkie (just kidding), and will be hitting the cinema as soon as the magazine has gone to press.

What does tax have to do with Star Wars, we hear you ask? Well, everything. The evil Emperor pioneered his rise from the mid-range politician Senator Palpatine to becoming the unchallenged ruler of the galaxy – using tax.

In The Phantom Menace, Palpatine manipulates tensions arising from a tax dispute concerning the Trade Federation's trade routes in order to convince the Federation to blockade and ultimately invade his own planet, Naboo, in protest.

He then uses the plight of Naboo to trigger a snap election in the galactic senate, has himself elected on a sympathy vote, secretly authorises the creation of a clone army which will later become storm troopers and turns a young Anakin Skywalker into part-respirator, part-supervillain Darth Vader.

The pair wipe out the Jedi and rule the galaxy as an effective dictatorship for the next 20 or so years – presumably hiking tax rates somewhat to pay for two Death Stars – before Vader's bad parenting eventually catches up with them both.

Who would've thought a tax dispute could get so out of control?

Pie ‘tax’

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Leeds United fans have found the ‘pie tax’ hard to swallow

Former footballing powerhouse Leeds United's fall from grace has been one mired in financial trouble, poor football and worse leadership, culminating in owner Massimo Cellino being banned by the Football League from owning the club in October.

The club hit a new low in November, however, when it began imposing what fans are referring to as a 'pie tax'.

Pies are synonymous with British football – particularly in northern England – as fans often queue at half-time (or even mid-game if the quality of skill on display is particularly dire) for a hot meaty snack and a pint of beer.

The pie tax is not exactly as it seems, however. The club has in fact tacked an extra £5.00 ($7.50) onto its matchday tickets under the guise of it now including a 'meal deal' voucher.

Tax Relief hasn't eaten a meal which wasn't at least partially wrapped in pastry since the late 1990s, and can't help but feel that if a pie tax were actually introduced then Yorkshire would descend into anarchy within hours.

In fact, in 2012 UK Chancellor George Osborne attempted to extend VAT to cover freshly-baked goods including, worryingly, pies. Three months later, after a furious public backlash and campaigns by national newspapers, the plans were quietly shelved, and widespread rioting was averted.

Quotes of the month

"The reason that [UK corporation tax] is too low is that corporations should pay their fair share of taxes, and that those jurisdictions such as Luxembourg, which have incredibly low-tax regimes for certain companies are freeloading. They are parasites."

Rob Marris, Shadow Financial Secretary to the Treasury, takes aim at tax competition.

"Mascherano admitted the facts of two counts of tax fraud, so there was no need to interrogate him."

A judicial source from FC Barcelona star Javier Mascherano's tax trial, which saw the player handed a 12-month prison term. As his crime was non-violent, the sentence is suspended, meaning he will still be able to play for the La Liga side.
more across site & shared bottom lb ros

More from across our site

Tax controversy specialist Matthew Sharp’s switch to Brown Rudnick follows hot on the heels of US counterpart Skadden’s appointment of a new London tax disputes head
Led by international law firm Hughes Hubbard, SKAT was awarded $500 million in damages after several defendants were convicted of fraud, negligence and unjust enrichment
HM Revenue and Customs’ costs of collecting tax have risen by 15% in four years, the National Audit Office also found
The plan, outlined by EU tax commissioner Wopke Hoekstra, would reportedly free 180,000 of the 200,000 in-scope businesses from additional compliance
The move to a new ‘high spec’ hub is slated for 2026; in other news, India reassesses its pillar two participation following the US’s withdrawal
The enacted legislation, which introduces a suite of new indirect taxes, was ‘highly awaited’ but presents major concerns, advisers tell ITR
Recent ATO guidance on how companies can demonstrate arm’s-length funding highlights how it is ‘one of the most transparent tax authorities in the world’, one adviser tells ITR
The proposed Block TP Assessment could provide taxpayers with long-term arm’s-length price certainty and reduce admin headaches, Sanjay Sanghvi of Khaitan & Co writes
India’s budget changes goods and services tax rules; UK private school VAT challenge fast-tracked
It is understood that the US has vowed to oppose any outcome from talks taking place at the UN
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