The UK government has recently announced plans to introduce new laws to target what they call “Cowboy tax advisors”, and businesses and celebrities that use aggressive tax avoidance schemes. These new laws will empower their revenue and customs services to force tax firms to reveal, who amongst their clients, use aggressive tax avoidance schemes as has recently happened where a comedian and members of pop groups claim that they actually work offshore, and as a result pay almost no tax at all. This is despite living and performing in the country.

Basically they set up a company, based the company in an offshore location and then say they are working for that company earning a minimal salary and the company earns all the profits in a location where little or no tax is paid. Embarrassing the firms, or the pop stars for example, is likely to isolate them from either their customers or their suppliers because nobody wants to give business to somebody else that is basically ripping off the public and also effectively competing unfairly with other businesses. When a company does not pay its fair share of tax, or pay staff for example, without deducting tax, and sometimes staff being paid higher salaries than they should be, it is also unfair competition with their competitors.