Special treatment for big corporations is simply unacceptable – Williams

Commenting on the report into tax settlements negotiated by HMRC, Co-chair of the Liberal Democrat Parliamentary Treasury Committee, Stephen Williams said:

"We all know that times are tough for Government finances. In order to sort out Labour's mess there has to be a mixture of increasing tax revenue and restricting the growth of spending. At the same time the taxman must collect all the tax that is due. Special treatment or even the perception of special treatment for big corporations is simply unacceptable.

"It is sometimes understandable in highly complex tax disputes that HMRC settles out of court. But when it comes to public money being lost through vast tax settlements, the taxman needs to be more transparent. The public must be able to see they how they are negotiating with big companies so they can see if special treatment is being given."

Stephen Williams has tabled an Early Day Motion calling for a general anti-avoidance rule within the next Finance Bill. It has been sponsored by David Laws, Simon Hughes, Tim Farron, Lorely Burt and Tom Brake.

Notes:

1. Text of the Early Day Motion is below:

General Anti-Avoidance Rule for taxation
Session: 2010-12
Date tabled: 01.12.2011
Primary sponsor: Williams, Stephen
Sponsors:

That this House notes the widespread public concern about the extent of tax avoidance and evasion by individuals and corporations; further notes that while evasion is illegal, taxes can be avoided by schemes that are contrived in their nature or by arrangements that are artificial and thus far removed from the responsible tax planning measures provided for by Parliament; believes that the ever-growing expansion of anti-avoidance measures has not eliminated the scope for exploitation of loopholes; further notes the publication of the report by Graham Aaronson QC outlining the case for the introduction of a general anti-avoidance rule in the UK; and urges HM Treasury to bring forward legislation within the next Finance Bill for the introduction of such a rule.