Taxation: International Companies

Lord Barnett Excerpts

Tuesday 23rd October 2012 Lords Chamber

[Lord Barnett]

Does the Minister accept that the Prime Minister’s, and indeed the Chancellor’s, definition of aggressive tax avoidance needs clarifying? In any case, does he accept that all tax avoidance schemes are always one step ahead of the Treasury and the Inland Revenue? Would it not be sensible and simple—all past Governments have always refused to do this—to have simple legislation to say that any tax avoidance scheme has to be approved by HM Treasury? Would that not solve the problem?

[Lord Sassoon]

The noble Lord, Lord Barnett, always wants me to be clear and simple, so the answer is no to his first two questions. On the third question, he has an underlying, quite proper, concern, which is why the work that Graham Aaronson has done for the Government on a general anti-avoidance rule, the so-called GAAR, is a very important part of ongoing work.