Panama Papers

Lord Tyrie Excerpts

Monday 11th April 2016 Commons Chamber

[Mr Speaker]

I was going to call the Chair of the Treasury Committee, but he is toddling out of the Chamber.

[Mr Andrew Tyrie (Chichester) (Con)]

Well, if you would like to call me, Mr Speaker—

[Mr Speaker]

Let us hear from Mr Tyrie. Get in there, man.

[Mr Tyrie]

Thank you very much, Mr Speaker. [Interruption.]

[Mr Speaker]

Order. I am sure that it will be worth waiting for.

[Mr Tyrie]

It is very good of you to give me the floor, Mr Speaker.

I do not think that the Prime Minister has done anything wrong, except, possibly, to comment on the Jimmy Carr case. Tax evasion is illegal and should be very vigorously pursued, if necessary with criminal prosecution and imprisonment. Tax avoidance is not illegal. If the Government or Parliament do not like it, there is no point in moralising. Does the Prime Minister agree that to deal with tax avoidance we need reform to close the loopholes, and vigorous tax simplification to ensure that there are fewer of them?

[The Prime Minister]

I am very glad that my right hon. Friend was detained before leaving the Chamber. I think that he is absolutely right. Tax evasion is illegal, and tax avoidance, if the Government disapprove of it, should be legislated against. That is the approach that we have taken. However, as I have said before and am happy to say again, there are some practices of very aggressive tax avoidance that I think do merit proper questions and then legislative action. To be fair to Jimmy Carr, as soon as it was pointed out that he was in a scheme to reduce his income artificially, he immediately changed his arrangements. He made that very clear, and I pay tribute to him for doing it.