Tax Avoidance (HSBC)

Debate between Lord Harrington of Watford and David Gauke

Monday 9th February 2015 Commons Chamber

[Mr Gauke]

On HSBC generally, there are clearly questions that need to be answered about what happened at HSBC between 2005 and 2007. HMRC has been taking action against about 1,000 people who were involved in this matter, where there is evidence that they have broken the UK law. HMRC will continue to take action in the event of any further evidence arising; I make that point about our approach. On Lord Green, what I would say is that he was a successful trade Minister. There is no suggestion, and no regulator has suggested, that he was at fault with regard to what happened with the Swiss subsidiary.

[Richard Harrington (Watford) (Con)]

The Government should be congratulated on the results they have achieved in collecting taxes that had been avoided and evaded because of a lax regime before they came to power. This is really two points. First, should blame be cast on this Government for something that happened, and does need investigating, when the previous Government were in power? Secondly, on the appointment of Lord Green, there was presumably at least the same level of due diligence as there was when the last Labour Prime Minister put him on his close business policy advisory committee.

[Mr Gauke]

My hon. Friend makes two good points. For the good of the public finances, we have taken tough action to deal with tax avoidance and evasion, and we will continue to do so, because that is what the British people expect of us.

Finance (No. 4) Bill

Debate between Lord Harrington of Watford and David Gauke

Wednesday 18th April 2012 Commons Chamber

[Mr Gauke]

My hon. Friend is right to say that we have taken a cautious approach to this matter. Indeed, many estimates suggest that we are overstating the amount that the 50p rate is bringing in. He is right to cite those figures.

[Richard Harrington]

Does the Minister agree that the Opposition are missing the point by talking about the amount that was raised by the 50p rate? The real point is the money that was not raised, owing to the disincentive that it created for people to set up businesses and to spend to create jobs and provide the growth that the country needs.

[Mr Gauke]

My hon. Friend is absolutely right. Let us put away some of the rhetoric that we have heard this afternoon and focus on the disagreement over the previous Government’s assessment of the behavioural impact of the 50p. Their assessment was that about 66% would be lost through behavioural impact. On the basis of the additional evidence that has emerged following the HMRC study, which is consistent with the consensus of the academic studies in this area, the estimate that the OBR has signed off is that the behavioural impact is closer to 83%. No reasonable case can possibly be made that there is no behavioural impact, yet the shadow Chancellor’s consistent argument that this is a £3 billion tax cut for the rich implies a behavioural impact of zero—miles away from any realistic case.

Office of Tax Simplification

Debate between Lord Harrington of Watford and David Gauke

Tuesday 20th July 2010 Commons Chamber

[Mr Gauke]

I am grateful to the hon. Gentleman for welcoming these measures. The intention is that the OTS will be neither a tax-raising nor a tax-cutting body but a tax simplification body. It will make recommendations, and our approach, wherever possible, is to broaden the base and lower the rate. If, for example, there are recommendations that reliefs should be withdrawn, we anticipate that the money saved could be recycled into tax cuts elsewhere. The OTS should not be seen as anything other than revenue-neutral.

[Richard Harrington (Watford) (Con)]

I thank the Exchequer Secretary for this initiative on behalf of businesses small and large in Watford and elsewhere—but not on behalf of the tax accountants, who have not contacted me to say how happy they are. Does he agree that measures such as this, when the public and small businesses find things simpler, are very much to the advantage both of them, and of the Exchequer purse?

[Mr Gauke]

I am grateful to my hon. Friend. I know some of the tax accountants of Watford, and I suspect that they too will welcome this measure.

Oral Answers to Questions

Debate between Lord Harrington of Watford and David Gauke

Tuesday 13th July 2010 Commons Chamber

[Richard Harrington (Watford) (Con)]

T6. In view of the importance of this issue to Opposition Members and their colleagues in the other place, can the Minister confirm that there are no plans for the Government to introduce VAT on the sale of hardback books?

[Mr Gauke]

I can assure my hon. Friend of that, and that newspapers—there was a very interesting one this morning—will not have VAT imposed on them either.