…and that’s another 3 years for ‘Waiting to Exhale’

Tax Evasion: the general term for efforts by individuals to evade taxes by illegal means.

Boris Becker, Lester Piggott, Al Capone; it’s a real rogues gallery (and not to mention a lethal power trio to rival even The Jam for tenacity).

So who’s the latest high profile individual to join this heavenly throng? Well, that would be loveable action hero and all round Renaissance man, Wesley ‘Blade, Blade 2, Blade Trinity’ Snipes.

Between 1999 and 2001, Master Snipes racked up an almighty unpaid tax bill of $15 million (I believe that to equal £7.5 million sterling). Did he take the Lewis Hamilton route (who wasn’t even born then) and move to the tax haven of Monte Carlo, saving himself from legal proceedings and the inevitable trip to the big house?

Oh no, Snipes chose the ‘sit around at home and occasionally make a third rate disaster movie’ approach, also favoured by Vin Diesel. In fairness to Diesel, he is a tax payer.

The net result for Snipes? 3 years in the clink and a demand that all missed taxes be paid with legal fees and fines on top. Still, it shouldn’t be too trying for him, he got sent down for life in ‘Undisputed’ and still came back to be the reigning US penitentiary boxing champion.

What? It was just a film? I do beg your pardon.

My favourite courtroom shot of our troubled movie star shows Snipes standing solemnly in a black suit and dark glasses, with hands clasped and raised to the heavens. What’s he praying for exactly, that the judge is a massive ‘New Jack City’ fan?

Prison can be a lonely place so I’m told, but there are a number of ways one can receive tax breaks without resorting to Snipes-esque measures.

Indeed, as i reported in our news pages last week, UK consumers are costing themselves an average of £290 a year by paying needless taxes. This figure is composed mainly of the following:

• failures to take advantage of available tax credits

• fines for late tax returns

•  not using capital gains tax allowances effectively

• choosing not to shelter savings in tax free ISAs.

If you’re on a low income and struggling to make ends meet, contact HM Revenue and Customs to see if you might be eligible for either child tax credit or working tax credit.

Capital Gains Tax (CGT) is a charge levied on the sale of non-inventory assets bought at a lower price. All individuals are exempt from CGT up to a specified amount of capital gains per year. For the 2007/8 tax year this annual exemption is £9200. Profits made from ISAs are, of course, exempt from CGT. 

With careful prior planning, you can significantly reduce the amount of CGT payable, so consult your financial adviser if you’re aiming to make a big sale (your house for instance) in the near future.

Filing your tax return late, as Wesley Snipes discovered yesterday can land you in hot water. UK taxpayers who fail to submit their tax return on time face a £100 penalty. The way to negotiate around this of course is to up sticks and move to a tax haven. Selected havens include Andorra, the Caymen Islands and San Marino.

A little closer to home, the Isle of Man does not charge corporation tax, capital gains tax, inheritance tax or wealth tax. On the other hand, if you want to buy a deck of cards in Alabama, it’ll cost you an extra dime in ‘playing card tax’. True story.

Emigrating seems a little extreme though; does anyone have any tax saving tips to share? If so, then leave a comment below.

During Ken Dodd’s tax evasion trial (for which, unlike Mr. Snipes, he was acquitted), he admitted to having over £300,000 in used notes stashed in his attic, primarily because he didn’t trust the practices of High Street banks.

In the light of the OFT versus big banks test case, maybe Mr. Dodd is something of the music hall Nostradamus?