Paradise Papers

Lord Blunkett Excerpts

Monday 6th November 2017 Lords Chamber

[Lord Bates]

The key point that must be remembered here is that, if funds are for legitimate reasons allowed to be placed offshore in order to purchase assets, and if the people concerned are domiciled in the UK, the funds need to be repatriated to the UK and full tax needs to be paid on the profits, income and revenue gained.

[Lord Blunkett (Lab)]

My Lords, there is a vast difference between an offshore vehicle intended to facilitate overseas investment and a trust that is set up to ensure that the individual concerned can place money outside this country, then have it loaned back to them, thereby not only avoiding income tax and national insurance on payments but, in the event of their death, ensuring that their estate has to pay the money back into the overseas trust, thus avoiding inheritance tax. That is surely a scandal.

[Lord Bates]

Each of these things will be checked by HMRC, but the point is that evasion of tax and attempting to evade tax is against the law and will be pursued with all vigour by HMRC. Avoidance continues to be part of the international financial system and we recognise and value it.