Steve Baker
Main Page: Steve Baker (Conservative - Wycombe)Department Debates - View all Steve Baker's debates with the HM Treasury
(9 years, 2 months ago)
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Mr Osborne
We have taken steps to deal with precisely the abuses to which the hon. Gentleman has alluded, such as the use of vehicles to avoid paying stamp duty, the creation of partnerships so that hedge funds do not pay the proper amounts, and the fact that foreigners did not pay capital gains tax. Disguised income is another abuse that we have sought to clamp down on—and, by the way, the Labour party voted against our action in that regard. As more abuses come to light and more contrived schemes are discovered, we take action to deal with them, but I have to say that we have had very little support from the Labour party.
Steve Baker (Wycombe) (Con)
When objective members of the public review these exchanges, they could be forgiven for thinking that there was little to choose between our parties. Will the Chancellor confirm that he has instituted not just the general anti-abuse rule, but follower notices and accelerated payments, and will he also confirm that our party has dealt with this issue far more robustly than the Labour party?
Mr Osborne
My hon. Friend is absolutely right. The accelerated payments scheme means that if tax is in dispute, we ask for it up front, and if people can prove that we have got it wrong, they get the money back. That is the rule with which the vast majority of our citizens must comply at present, but it was not complied with by those who were very well off. We introduced the accelerator, and as a result we are collecting hundreds of millions of pounds of tax that was previously not collected. As my hon. Friend says, that is further evidence of the gulf between what the Labour Government did during the 13 years for which the shadow Chancellor advised them, and what we have done in the last five years.