Oral Answers to Questions

Debate between Lord Stunell and David Gauke

Tuesday 14th May 2013 Commons Chamber

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

Tax evasion and tax avoidance undermine public revenues and the public’s confidence in the fairness and effectiveness of our tax system. The UK is pursuing action on both fronts through the presidency of the G8. We are promoting the development of new global standards on automatic information exchange and increased transparency of company ownership in order to better tackle tax evasion. We are seeking strong endorsement through the G8 of the importance of the work of the G20 and the OECD on tackling avoidance by multinationals.

[Andrew Stunell]

I thank the Minister for his reply. Does he think that it is now time to take a second look at the USA’s experience and its Foreign Account Tax Compliance Act to tackle the question of international tax avoidance?

[Mr Gauke]

My right hon. Friend makes an important point; indeed, we are doing that. We have signed an agreement with the US to implement FATCA as the new standard in tax transparency, and we are promoting that type of information around the world. We have reached agreements with the overseas territories and the Crown dependencies, while France, Germany, Italy, Spain and the UK have all agreed to exchange information based on the FATCA standard. That is very much the approach that we are taking in the G7, G8 and G20, and we have made remarkable progress so far.