House Of Lords Debates Tax Evasion And Avoidance

by Jason Gorringe, Tax-News.com, London

06 February 2004

Speaking in a House of Lords debate on Tuesday, Parliamentary Under-Secretary of State for the Department of Culture, Media and Sport, Lord McIntosh of Haringey defended the government's position on tax evasion and avoidance, and spoke with regard to international initiatives on the matter, although he declined to reveal how much revenue is lost in the UK each year to offshore financial centres.

In response to a question from Lord Barnett regarding the government's policies to combat tax evasion in relation to offshore financial centres and overseas territories, Lord McIntosh announced that:

"Her Majesty's Government believe that international co-operation to promote transparency and exchange of information is the most effective way of tackling cross-border tax evasion. We welcome the progress that our overseas territories and the Crown Dependencies have made in committing to international standards and we will continue to promote the adoption of the highest standards in all financial centres."

When further questioned by Lord Barnett on the UK government's role in ensuring that OECD's 'harmful tax competition' initiative creates a level playing field for all affected countries, offshore and on, Lord McIntosh explained:

"I agree that it is necessary for us to support the OECD's pursuit of all financial centres to ensure that they adopt the highest possible standards. Most recently we have succeeded in ensuring the highest possible standards in the Crown Dependencies. The issue of overseas territories is being pursued by the European Union with a good deal of success, but we need to continue to pursue many other financial centres. We totally support the OECD in doing that."

However, when asked by former ICAEW president, Baroness Noakes about the level of revenue loss which occurs as a result of tax evasion each year, the Parliamentary Under Secretary admitted that:

"My Lords, that might be the classic unknowable statistic. Tax evasion is tax that is unpaid by breaking the law. If we had statistics on law breaking we could stop that."

Recommended