Is underpaying tax as bad as theft? Britain’s deputy prime minister has resigned over the stamp duty on her seaside flat. Some think her downfall should alert us to the true cost of tax avoidance.
Money, mayhem and a resignation
A Rayn on her parade: Angela Rayner became a mother at the age of only 16, before going on to become one of the UK's top politicians. Comprehension quiz
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1. The word “constituency” in this context means:
A: The specific geographical area that an MP represents in parliament.
B: A group of financial supporters for a political party.
C: A type of property tax for second homes.
D: The main policy a politician supports.
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Which word is the closest synonym for “accountable”?
A: Wealthy
B: Responsible
C: Hidden
D: Unreliable
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According to the article, why did Angela Rayner have to resign?
A: She was found guilty of tax evasion.
B: An angry resident spray-painted her house.
C: She launched a new housing policy.
D: She was found to have broken the ministerial code.
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According to Tax Justice UK, how much is the country missing in unpaid tax?
A: £40,000
B: £70,000
C: £40bn
D: £30,000
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According to the article, who is the BBC’s chief political correspondent?
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In your own words, summarise the two opposing viewpoints in the article about whether tax avoidance is worse than theft.
Answers
Tap to reveal
1. A2. B 3. D 4. C 5. Henry Zeffman 6. One viewpoint is that tax avoidance is worse than theft because it takes money away from public services that everyone needs, like the police, and the problem is huge, amounting to at least £40 billion a year. The opposing viewpoint is that theft is worse because it involves intentionally taking a possession from someone, whereas tax avoidance can be an accidental mistake due to complex rules, and some loopholes are legal.
1. A2. B 3. D 4. C 5. Henry Zeffman 6. One viewpoint is that tax avoidance is worse than theft because it takes money away from public services that everyone needs, like the police, and the problem is huge, amounting to at least £40 billion a year. The opposing viewpoint is that theft is worse because it involves intentionally taking a possession from someone, whereas tax avoidance can be an accidental mistake due to complex rules, and some loopholes are legal.
Glossary
Tax - Money workers pay to the government to pay for services like roads and hospitals.
Regency - A situation in which someone takes the place of a monarch who is too young or no longer able to rule.
Constituency - An area whose voters elect a person to represent them.
Trust - Believe or have faith in something or a legal arrangement where money is held for somebody's benefit (usually a child's).
Ethics - The moral rules that people follow in order to have a good life and benefit society.
Ministerial code - A document setting out the rules and ethical standards that UK government ministers must follow.
BBC - The British Broadcasting Corporation is the UK's national broadcaster.
Rishi Sunak - A British politician who was the Prime Minister of the United Kingdom from 2022 to 2024.
Non-dom - Short for non-domiciled status. A tax status under British law which means that a person who lives in the UK can state that their permanent home is abroad. They pay tax in the UK on UK income but not on foreign income.
Tax avoidance - When a person finds legal loopholes to avoid taxes/pay less tax. It is different to tax evasion, which is when someone does not pay taxes in an illegal way.