Taxation: Tax Havens

Lord Barnett Excerpts

Wednesday 9th January 2013 Lords Chamber

[Lord Newby]

My Lords, the Government greatly welcome the enthusiasm from the Benches opposite for the initiatives which we are now taking.

[Lord Barnett]

My Lords, global agreement is clearly important and I am glad that the noble Lord and the Government are seeking it. However, that will take a very long time. Would it not be better to do as I think my noble friend Lord Dubs was saying—to seek agreement among some of the smaller areas where countries are doing these things, such as the Channel Islands and the Isle of Man? Are we doing anything there?

[Lord Newby]

My Lords, there has been a lot of activity to increase transparency in relation to the Channel Islands and the Isle of Man so that we can now request information about an individual’s tax affairs. A major change is that we are moving towards what is called an enhanced automatic tax information exchange, the first of which was signed with the Isle of Man. This means that every year we will automatically get details of the tax affairs of UK-based individuals with accounts in those countries. We will find out what payments have been made into bank accounts in those countries so that we can make sure that those people are paying adequate amounts of tax. That deals with individuals, however, whereas the Question of the noble Lord, Lord Dubs, deals more with corporates.