My Lords, I was not going to speak but the eloquent speech of the noble Baroness, Lady Kramer, has persuaded me to say a few words. I do not think the DOTAS legislation, on which this particular legislation in this Bill is modelled, has been that effective. I have challenged the Minister and his colleagues on a number of occasions to name even one big accounting firm that has ever been investigated, disciplined or fined after the courts have said that their tax avoidance scheme was unlawful.
When it comes to national insurance, the Government themselves have created avoidance schemes. For example, there is no national insurance payable on unearned income. Accountants are busy—as they will be in these cases as well—converting income to capital gains as it attracts absolutely none. I sense in this Bill that the Government are playing to the Public Gallery saying, “We are really serious—we are going to clamp down on this kind of avoidance”, but they do not have the means to do so. There is no logic whatever as to why unearned income should be exempt; it is simply a way of avoiding.
When the Government talk about avoidance, I wonder, first, what they mean by that. We have had numerous disclosures, whether in the Paradise papers, Panama papers, or other leaks, which show that many of the national insurance tax avoidance schemes have been marketed by offshore entities. The Government are in absolutely no position to go after those enablers and have not done so.
I am just giving more fuel and ammunition to the arguments put by the noble Baroness, Lady Kramer, that the Bill is all about public impression management. That is why I have stayed silent for so long and why I
did not table any amendments—because fairly soon after this is implemented, we will hear, just as with the previous free port legislation, that it will not achieve very much.