Is tax avoidance a sin?

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I am a law student currently studying for my finals and one of my modules is Company Law. Here in the UK, tax avoidance (not to be confused with tax evasion which is a crime) is perfectly legal. While studying Company Law, I learned of a really good way of avoiding tax by setting up a shell company and putting your home in the company’s name to pay the corporate tax rate on it which is considerably lower than the usual rate. In Financial Crime, one of my other modules, my Professor said something along the lines of “although tax avoidance is legal, whether it is moral is another matter.”

Do you believe this is immoral and, thus, a sin?

Please do not answer this if you are a socialist (which you should not be anyway if you are a Catholic) as I know your answer will reflect your position. I want good, solid, Catholic answers.

Also, I do not wish to give the impression that I am an avaricious man. I am not planning on avoiding tax but am merely asking this out of curiosity.

Thanks in advance 🙂
 
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Well, whats the intention in avoiding tax?

Does the avoider need to feed a family and taxes make that impossible?
or
Is it just another way to hoard money?
 
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I am not planning on avoiding tax. I am merely asking this out of curiosity.
 
Yes, I know.

‘you’ is more ‘a random person avoiding tax’. I will edit
 
Render unto Caesar what belongs to Caesar and to God what belongs to God. Blablabla…,

Taxes are good if they’re being used properly. However, people become upset, rightfully so, when the money is squandered.
 
And to add to what Deacon Jeff said, if Caesar doesn’t want people to do things that way, Caesar can change the law accordingly.
 
Good question OP.

I myself have been studying tax avoidance (did some courses) so I can teach small companies how to use it. I’m not sure when I’m going to begin though, but it’s a project I believe in.

I live in a country in which taxes are 1/3 of the GDP. In other words, the government takes an equivalent of 50% of what I get to keep! Besides, companies take over 2000 hours a year in average to calculate how much they owe the government… it’s a matter of life or death to many companies, and of more jobs to people who need an income in order to survive (high unemployment rates here too).
 
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Well, it depends. If you live in a first world country some of your taxes probably go to fund planned parenthood, free contraception, stem cell research etc, maybe it’s good for you to pay less tax. But if you live in a country where the government’s laws do not conflict with God’s laws then you should be a good citizen and pay your share. Jesus in the bible paid his taxes as well.

Pharisee: Tell us therefore what you think, is it lawful to give tribute to Caesar, or not?
But Jesus knowing their wickedness, said: Why do you tempt me, ye hypocrites? Show me the coin of the tribute. And they offered him a penny. Jesus: Whose image and inscription is this?
Pharisee: Caesar’s.
Then he said to them: Render therefore to Caesar the things that are Caesar’s; and to God, the things that are God’s.
 
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That is an excellent point! And then you could give the money you saved to a pro-life charity!
 
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In America, a lawyer has a duty to offer his client the best possible representation. If you know a legal way to avoid the most taxation, it would be a dereliction to keep the information to yourself.

If your morals bother you, you should decline representation.

There are reasons why people do not like lawyers. They say, “how can you represent a guilty woman?” It is hard to explain that “everyone has a right to the best possible representation given certain limitations.”

The same goes for shell companies.

In the morning, you are the person who has to live with your actions. Are you comfortable exploiting tax laws for your client? Because if you are not, you have no business being a Corporate Attorney.
 
I am a law student currently studying for my finals and one of my modules is Company Law. Here in the UK, tax avoidance (not to be confused with tax evasion which is a crime) is perfectly legal. While studying Company Law, I learned of a really good way of avoiding tax by setting up a shell company and putting your home in the company’s name to pay the corporate tax rate on it which is considerably lower than the usual rate. In Financial Crime, one of my other modules, my Professor said something along the lines of “although tax avoidance is legal, whether it is moral is another matter.”

Do you believe this is immoral and, thus, a sin?

Please do not answer this if you are a socialist (which you should not be anyway if you are a Catholic) as I know your answer will reflect your position. I want good, solid, Catholic answers.

Also, I do not wish to give the impression that I am an avaricious man. I am not planning on avoiding tax but am merely asking this out of curiosity.

Thanks in advance
NO!

Render unto Caesar what IS Caesars and to God what Is God’s

Your utilizing the Law NOT breaking it. What your doing is LEGAL and in this case also moral {and clever too}

Easter Blessings,
Patrick
 
Supreme Court:

Famous Judge Learned Hand Quote

"Anyone may arrange his affairs so that his taxes shall be as low as
possible; he is not bound to choose that pattern which best pays the
treasury. There is not even a patriotic duty to increase one’s taxes.
Over and over again the Courts have said that there is nothing sinister
in so arranging affairs as to keep taxes as low as possible. Everyone
does it, rich and poor alike and all do right, for nobody owes any
public duty to pay more than the law demands."

by:
Judge Learned Hand
(1872-1961), Judge, U. S. Court of Appeals
Source:
in the case of Gregory v. Helvering 69 F.2d 809, 810 (2d Cir. 1934), aff’d, 293 U.S. 465, 55 S.Ct. 266, 79 L.Ed. 596 (1935)
 
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Supreme Court:

Famous Judge Learned Hand Quote

"Anyone may arrange his affairs so that his taxes shall be as low as
possible; he is not bound to choose that pattern which best pays the
treasury. There is not even a patriotic duty to increase one’s taxes.
Over and over again the Courts have said that there is nothing sinister
in so arranging affairs as to keep taxes as low as possible. Everyone
does it, rich and poor alike and all do right, for nobody owes any
public duty to pay more than the law demands."

by:
Judge Learned Hand
(1872-1961), Judge, U. S. Court of Appeals
Source:
in the case of Gregory v. Helvering 69 F.2d 809, 810 (2d Cir. 1934), aff’d, 293 U.S. 465, 55 S.Ct. 266, 79 L.Ed. 596 (1935)
Is there similar precedent in the UK?
 
It is not immoral or a sin as you in the situation you stated. We have a duty to follow a just law. All the regulations are available for all and can be used to minimize what is owed. In my opinion, we should do what we can to pay the least.
 
Exploiting loops holes in ways that they were not intended to be used to pay less than you fair share is suspect at best… no better than those who exploit the welfare system by not attempting to work when they are perfectly able.

Both are sinful In my opinion
 
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Last Will and Testament of Cruciferi

I Richard Dean Cruciferi being of sound mind and failing body hereby liquidate my entire estate and give it back to my beloved Federal Government.
 
I submit that you answered your own question in your OP. Tax evasion is illegal, tax avoidance is not. Honestly obeying all tax laws, especially if it lessens your tax bill is perfectly legal and moral. Fraud on the other hand is illegal and a sin.
 
Render unto Caesar that which is Caesar’s.

Spoken by a guy we should probably listen to.
 
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