Labour vows to crack down on tax avoidance

11 Feb 15
A future Labour government would introduce a tax dodging Bill that would see stronger independent scrutiny of the UK tax system and make country-by-country reporting information publicly available.

By Judith Ugwumadu | 11 February 2015

A future Labour government would introduce a tax dodging Bill that would see stronger independent scrutiny of the UK tax system and make country-by-country reporting information publicly available.

The party said its first Finance Bill, should it be elected in May, would close tax loopholes and would take force ‘in the first months’ of a Labour government. Specifically, it would close loopholes used by hedge funds to avoid stamp duty and stop large companies profit shifting out of the UK in order to avoid cooperation tax.

Shadow Chancellor Ed Balls said the government had failed to tackle tax avoidance in the last five years.

‘They have failed to close loopholes we have highlighted. And the amount of uncollected tax has risen under this government.

‘We will close loopholes that cost the exchequer billions of pounds a year, increase transparency and toughen penalties.’

Following revelations about tax avoidance activities at HSBC, the party is making tax dodging the subject on an opposition day debate, due to begin later this afternoon. Its motion calls on the prime minister and former HSBC chair and Conservative peer Lord Green to make a full statement about Green’s role at the bank and his appointment as a minister. Green served as trade minister from 2011 until 2013.

Shabana Mahmood, Labour’s shadow exchequer secretary, said: ‘The Tories and LibDems should back our motion to show that they are serious about tackling tax avoidance and evasion. We have a clear plan for our first Finance Bill after the election – they need to back that or explain why they don’t.’

 

 

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