Tax dodging was on the parliamentary agenda last week with a general debate and a Bill brought before MPs.
The Government is introducing something called a tax avoidance rule but I have always argued we need a broad tax avoidance principle.
A rule allows people to circumvent it on a technicality, especially those who can afford to hire expensive lawyers to try and get around the system, whereas a principle can be applied to tax dodgers across the board.
A principle would be both attractive to businesses and to HMRC by creating a level playing field so that everyone can pay their fair share, whilst bringing in tax revenue that would otherwise go unpaid.
What’s not to like?
Some other MPs agree with me and have introduced a Bill that would bring in a tax avoidance principle.
Unfortunately it doesn’t have the official backing of their parties – Labour, the Conservative and the Liberal Democrats are good at sounding tough on tax dodging but are not willing to support the mechanisms that would result in a real clamp down.
I made this point in Parliament and also pointed out that cutting HMRC staff would make it more difficult to chase unpaid tax and pursue tax dodgers.
You can read my comments here and here.
I have sponsored an Early Day Motion about this too and last year proposed a Bill that would require every company to make public how much they earn, so the proper amount of tax can be paid.
If you want genuine tax justice too, and not just a few tweaks to the system that will change nothing, please sign this petition: http://epetitions.direct.gov.uk/petitions/18996
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