Taxation: Avoidance Debate

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Department: HM Treasury

Taxation: Avoidance

Baroness Gardner of Parkes Excerpts
Thursday 14th March 2013

(11 years, 7 months ago)

Lords Chamber
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Lord Newby Portrait Lord Newby
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My Lords, I think the Government are a global leader in this area. We are taking a lead at the G8, and have taken the lead in the OECD to get the international tax rules changed. However, the other component that we are also taking a lead in is helping poorer countries to develop their own tax collection abilities. For example, work that HMRC has done in Ethiopia resulted in a sevenfold rise in the amount of tax collected in that country in the nine years from 2002.

Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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Can the Minister tell me why, on the Inland Revenue tax return that one has to complete, one is asked to specify if one belongs to any approved tax-avoidance scheme? Can he tell me how a tax-avoidance scheme gets to be an approved tax-avoidance scheme, and what exactly that means on your Inland Revenue tax return?

Lord Newby Portrait Lord Newby
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My Lords, there is something called DOTAS—the disclosure of tax avoidance schemes—which was introduced in, I think, 2004 and requires people who have come up with a tax wheeze to consult HMRC. If HMRC believes that it is a legal scheme, it gives it a number. That is the number you are supposed to put on your tax return if you subscribe to that scheme.