I beg to move an amendment, to leave out from “House” to the end of the Question and add:
“notes that while the release of information pertaining to malpractice between 2005 to 2007 by individual HSBC accountholders was public knowledge, at no point were Ministers made aware of individual cases due to taxpayer confidentiality or made aware of leaked information suggesting wrongdoing by HSBC itself; notes that this Government has specifically taken action to get back money lost in Swiss bank accounts; welcomes the over £85 billion secured in compliance yield as a result of that action, including £850 million from high net worth individuals; notes the previous administration’s record, where private equity managers could pay a lower tax rate than their cleaners, very wealthy homebuyers could avoid stamp duty and companies could shift their profits to tax havens; further recognises that this Government has closed tax loopholes left open by the previous administration in every year of this Parliament, introduced the UK’s first General Anti-Abuse Rule, removed the cashflow advantage of holding onto the money whilst disputing tax due with HMRC, and allowed HMRC to monitor, fine and publicly name promoters of tax avoidance schemes; notes this Government’s leading international role in tackling base erosion and profit shifting; welcomes the commitment to implement the G20-OECD agreed model for country-by-country reporting and rules for neutralising hybrid mismatch arrangements; notes the role of the diverted profits tax in countering aggressive tax planning by large multinationals; supports the Government’s adoption of the early adopters initiative; and recognises that as a result the UK is collecting more tax than ever before.”
The disclosures of the last few days have reminded us of an era when it was all too easy to squirrel assets offshore, reliant on offshore centres providing secrecy from tax authorities; a time when mass market avoidance schemes were prevalent, tax avoiders could enter schemes and, however artificial or contrived, wait for years before paying their taxes; a time when highly paid employees could disguise their remuneration and avoid tax on it; a time when the payment of stamp duty on expensive properties was seen as voluntary; and a time when HMRC did not get the support it needed to take effective action against those dodging taxes.
That time is behind us. Under this Government, loopholes are being closed, tax avoiders are paying their tax up-front, bank secrecy is being abolished, prosecutions are increasing, the international tax rules on multinationals are being reformed, and HMRC is bringing in the money to a greater extent than ever before. For all the bluster we hear, look at the record. As a Government who care about the public finances, we have done far more than our predecessors.
I will set out what we have done over the course of this Parliament. First, let me turn to the issue of HMRC. Lord Green was a very effective trade Minister, but let me be crystal clear: there is no suggestion, and no regulator has suggested, that Lord Green was at fault with regard to what happened with the Swiss subsidiary of HSBC. Ministers, and indeed the general public, were aware of the release of information pertaining to individual HSBC account holders. There is a long-standing legal requirement for taxpayer confidentiality. Ministers cannot under any circumstances be made aware of individual cases. At no point were Ministers made aware of the evidence that has emerged in recent days of wrongdoing by HSBC itself.