FinanceBAM News

According to an article in the June 21, 2007 edition of Daily Mail, there has been a widening gap between the rich and the poor in Britain and it’s said this may cause riots.

Sir Ronald Cohen has said that something must be done before the situation turns violent. The close friend of Gordon Brown also raised the spectre as it was shown that some of Britain’s richest were attacked by a powerful Commons committee by getting out of paying high taxes via a loophole.

Last week it was found that some entrepreneurs are paying a lower rate than their cleaners. Ordinary citizens are outraged that these wealthy entrepreneurs were receiving huge tax breaks.

Labour MP Sion Simon was quoted as saying, “There is a sense you are taking the mick. You are too rich, you are making too much money, and you are not paying enough tax.” Sir Ronald was concerned that the same riots that took place in Paris in 2005 could happen in Britain if the poor were left behind.

Sir Ronald then explained that entrepreneurial economies who grow quickly and also lead to job creation does lead to large difference in wealth. When this happens, it only takes a spark to lead to a violent reaction.

However, Sir Ronald was placed under scrutiny when it was said that he has non-domiciled tax status in the UK, meaning he doesn’t have to pay tax on income earned overseas. Some say it’s hypocritical of him to say there is anything wrong with the tax laws.