kalel wrote:Which is exactly what happens at the moment. An apparent loophole is found, it's legislated against, that loop-hole is no longer possible. The tax system gets that just one little bit more complicated, further loopholes are introduced, and the cost of administering it increases. 20 Goto 10.
I don't think the reward for having a clever enough lawyer to be able to find cracks in the existing laws to fall into, and use laws that were designed with a completely different purpose in mind to your advantage should be not paying tax. And I think those fairly specific circumstances can be legislated for.
You can't prevent exploiting loopholes that nobody intended to be used without fairly fundamentally changing the legal system, by allowing retrospective tax liabilities or something crazy like that. I'd be a worse situation than now.
Thanks for expressing interest in my signature!