Oral Answers to Questions

Debate between Grahame Morris and David Gauke

Tuesday 19th April 2016 Commons Chamber

[Mr Gauke]

My hon. Friend is absolutely right to highlight that. All taxes are ultimately paid by people, but business taxes that discourage investment discourage the economic growth we need in this country, and that growth is what this Government are determined to deliver.

[Grahame M. Morris (Easington) (Lab)]

8. For what reasons the Government have not introduced a general anti-tax avoidance principle.

[The Financial Secretary to the Treasury (Mr David Gauke)]

A general anti-avoidance rule was considered by an independent study group led by Graham Aaronson QC in 2011. The group recommended an anti-abuse rule for the UK because it felt strongly that it would strengthen and complement existing tools available to HMRC. The Government accepted the recommendation and introduced a general anti-abuse rule in 2013, striking the right balance between protection against avoidance and certainty for taxpayers.

[Grahame M. Morris]

One way to put an end to aggressive tax avoidance is a general principle—a principle, not a rule. I am sure the Minister understands there is a difference: people can find a way around a rule, but it is not easy to do that with a principle. Will the Government therefore back their public statements about tackling aggressive tax avoidance and legislate for a general principle of tax avoidance?