Lord Purvis of Tweed
Main Page: Lord Purvis of Tweed (Liberal Democrat - Life peer)Department Debates - View all Lord Purvis of Tweed's debates with the Cabinet Office
(4 years, 7 months ago)
Lords ChamberI think that most of us share the noble Baroness’s views on abusive tax measures by companies. Apart from all the measures that we have introduced over the past seven or eight years, we announced that we will legislate this year in a Finance Bill for 2021 to strengthen HMRC’s existing anti-avoidance powers to make it more difficult for promoters, in this case, to sidestep their obligations. We will continue to bear down wherever we can.
One measure highlighted by the Minister was the new tax evasion offence for corporations and partnerships that do not act properly in their operations. Will the Minister consider expanding that offence to include enterprises that aggressively pursue individuals—mainly those who are potentially vulnerable or re-entering the workforce, such as NHS workers. Tax evasion is an act that morally subverts the law, especially for self-employed people who will have to pay extra tax at the end of this crisis.
I am sure that the noble Lord will contribute to the legislation when it comes through. I support his ideas. I assure noble Lords that we have closed the tax gap quite dramatically over the past 10 years. In 2005-06, it was £4.9 billion; in 2017-18, it was £1.8 billion. HMRC has won 90% of the avoidance cases that it has litigated on since 2018.