Oral Answers to Questions

Debate between Nia Griffith and David Gauke

Tuesday 10th March 2015 Commons Chamber

[Nia Griffith (Llanelli) (Lab)]

We all want to see an end to big companies wriggling out of tax by offshoring profits, but what assessment has the Minister made of the impact on kitchen table digital industries, such as the sale of knitting patterns, of the way in which HMRC has implemented the new EU rules on VAT being collected in the country of sale, and what can he do about it?

[Mr Gauke]

Those are EU rules. It was the previous Government who signed up to the principle of changing the way in which the VAT system worked, and they were right to do so. This Government have taken two measures to try to mitigate the impact on some smaller businesses. None the less, without the support of other member states, we are still faced with a change in the rules.

Oral Answers to Questions

Debate between Nia Griffith and David Gauke

Tuesday 12th March 2013 Commons Chamber

[Nia Griffith (Llanelli) (Lab)]

T4. Companies are telling me that with demand at rock bottom and infrastructure projects failing to get away from the starting blocks, they see little incentive for investment in UK industry. When drawing up the Budget, will the Chancellor consider expanding the scope of enhanced capital allowances to cover a broader range of investment, and therefore encourage companies to invest in the UK rather than take their money elsewhere?

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

I shall take that as a Budget representation, but it is worth pointing out that at the last autumn statement the annual investment allowance was increased tenfold.

Oral Answers to Questions

Debate between Nia Griffith and David Gauke

Tuesday 12th October 2010 Commons Chamber

[Nia Griffith (Llanelli) (Lab)]

1. What steps his Department is taking to increase the level of tax compliance.

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

The Chief Secretary to the Treasury announced £900 million of investment in Her Majesty’s Revenue and Customs to tackle avoidance, evasion and fraud, sending a clear signal that the spending review will be focused on both fairness and deficit reduction. It will include an increase in prosecutions and steps to tackle organised criminal excise smuggling. HMRC also recognises the importance of helping businesses to get their tax right and has launched additional education and guidance packages in order to do so.

[Nia Griffith]

Given the enormous importance of reducing the tax gap, and thereby reducing the deficit, what assurances can the Minister give that actually he will be taking on more tax officers and ensuring a good geographical spread to make sure we get in the maximum tax revenues possible?

[Mr Gauke]

As was made clear in the Chief Secretary to the Treasury’s statement, the Government are determined to reduce the tax gap. It currently stands at £42 billion. It is too high, but we are determined to take measures to address it and we have already announced proposals by which we can reduce the tax gap.