Companies such as Apple, Starbucks, and Amazon are well known for legally using international law to their advantage when it comes to tax. But now a small Welsh town is mimicking their tactics. Independent traders in Crickhowell are moving their businesses “offshore” to avoid paying tax.
The local businesses—including the local coffee shop, bookshop, optician, and bakery—said that they want to see a change in the law “so everyone pays their fair share.” The details of how they intend to achieve this have not been disclosed and whether the proposals will succeed in practice is therefore open to question. But the issue raises some fascinating questions.
Tax avoidance—rather than evasion—is entirely legal. You tend just to need an expensive lawyer who can navigate the various loopholes. So how might they do it?
