Lord Woolf
Main Page: Lord Woolf (Crossbench - Life Peer (judicial))Department Debates - View all Lord Woolf's debates with the HM Treasury
(11 years, 4 months ago)
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Lord Newby
There is considerable scope for HMRC to undertake the kind of discussions that the noble Lord describes. The additional resources that we put into compliance have been spent in no small measure dealing with exactly that. The amount of revenue that we have been able to recover has increased by a number of billions, but this does not deal with problems such as the ones that my noble friend Lord Teverson has described.
Lord Woolf
My Lords, 40 years ago I was junior counsel to the Inland Revenue for a time. At that time, I and the Inland Revenue understood the legal position to be that every taxpayer had the right to arrange their affairs to reduce their liability for tax. I understand from what the Minister has already said that it is proposed to reconsider that situation. So be it. However, until it is changed, does the Minister agree that the principle that I have just enunciated is still a good principle of law and one to which the Inland Revenue still has to have regard?
Lord Newby
My Lords, I agree that it is a good principle, but the problem we face at the moment is that large multinationals are able to order their affairs so that in some cases they end up paying virtually no tax, or nothing that is proportionate to the tax regime in any major country.