Earn As You Pay
A Simple Guide for the Taxpayer. By John Wood. (Putnam, 9s. fd.)
ONCE upon a time income tax was opposed as likely to bear most harshly upon the honest citi- zen who declared his liability. But today, with PAYE, there is strictly limited scope for con- cealment: wherever tax is deducted at source, the victims are more likely to pay too much than to get away with too little. In short, income tax may bear most unfairly on the innocents who do not know what taxation can legitimately be avoided, or who grudge the fee of an accountant to protect their pocket. John Wood's most read- able .Guide could almost be described as a short manual on tax avoidance. He quotes a' Scottish judge, Lord Clyde, to establish that whilst the duty of the Inland Revenue is to collect as much taxes as the law allows, the taxpayer has the right `to prevent, so far as he honestly can, the depletion of his means by the Inland Revenue.' Here is the difference between tax avoidance and tax evasion, and after warning against the penalties for the latter and the intricacies of the former, Mr. Wood steers us through the fiscal jungle with a sure-footed facility that is exhilarating to follow. If there is a criticism it can only be that in his hands the 0yramid of expediency thrown up by successive Finance Acts begins to look almost logical. But then if all the victims grasp the opportunities presented by such allowances as those for dependants, old age, expenses, house mainten- ance, life assurance and other forms of savings, there would be less arbitrariness between people in similar circumstances. Chapter IV alone could save se'veral times the cost of this book to anyone with £100 or more to put into small savings. For those higher up the tax scale, the chapters on double-taxation relief, Schedule A and estate duty are a cheap investment. For everyone, the chap- ters on indirect taxes and where the money goes are a positive goad to ease the burden wherever possible. This authoritative book, with its one hundred pages of clear, direct prose, should be compulsory reading for a nation of taxpayers. An enterprising Labour back-bencher might suggest that its cost be accepted by the Inland Revenue as an allowable expense for all conscientious tax-avoiders.
RALPH HARRIS
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