Taxation: Avoidance Debate

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Department: HM Treasury

Taxation: Avoidance

Baroness Symons of Vernham Dean 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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The road to the GAAR, as it were, was long and difficult. As the noble Baroness will know, it was resolutely opposed by the party opposite when it was in government. We are making a proportionate start, and hope that it will be successful in dealing with the most egregious tax avoidance schemes. The great thing about it is that it is a deterrent. It will definitely be kept under review, but it is a big step forward, and we should not underestimate that.

Baroness Symons of Vernham Dean Portrait Baroness Symons of Vernham Dean
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My Lords, the noble Lord mentioned tax avoidance in the context of the G8, which this country is hosting later this year. Are there any plans to involve HMRC in discussions on the Deauville process with regard to the Arab countries in transition that want or need to look again at their tax systems?

Lord Newby Portrait Lord Newby
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My Lords, I think there is a willingness on the part of HMRC and the Government more generally to work with any country that seeks to do that. As I say, we are already working with 20 countries. In recent months, DfID and HMRC have been looking together at how to put together a business case to allocate more resources to this area. The interesting thing about it is that this is a relatively new area. We have realised that we have expertise that can make a big difference to a whole raft of developing countries, and we are very keen now to capitalise on it.