Liechtenstolen

News that the German and British governments have been paying for information almost certainly illegally obtained in order to chase people who try to stash their money overseas should worry us all. Obviously in this case the amounts of money potentially liable for tax are quite large numerically, although small in proportion to the total tax take - though the fact that it is merely around one fifth of one per cent of the total UK tax take we're talking about should alter our opinion about people who try to beat the system when everyone else has to pay. But it is the means employed that are of concern - paying what amounts to a criminal who has liberated customer personal information from the Liechtenstein bank at which he or she worked.

In a world in which it is ever easier for us to trade with overseas companies and individuals, to live in one place and earn in another and to invest in overseas assets, all of which are a good thing, I have warned previously that governments could try to get more authoritarian about chasing money allegedly stashed away or earned elsewhere:

This means ever more intrusive government, clinging desperately to current understandings of money, income and taxing that income as the only progressive way. We are already seeing huge bites taken out of our civil liberties because of immigration fears, terrorism and taxes.



And of course there is an alternative; that we switch to taxing only things that are impossible to hide - like land, which happens to have the added advantage of being value that the occupier does not create, rather than capital wealth or income which the worker or investor has created.

You might think this is just a bunch of rich people getting what they deserve from HMRC, but their willingness to engage is what amounts to industrial espionage to do so is disturbing and is a message to us all, whether we just trade with Americans on Ebay who then send us "gifts" tax-free or decide to retire to Spain, or further afield, whilst keeping a retirement job working online for a UK employer.

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