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Oral question asked in the House of Lords, by Lord Forsyth of Drumlean (Conservative). It was answered on Wednesday, 20 October 2010.


Taxation: Avoidance

Question
My Lords, would my noble friend not agree that how we use language is important? There is a big difference between tax evasion and tax avoidance. After all, everyone with an ISA is involved in tax avoidance. It is extremely important that we make clear the distinction between that which is legal and that which is illegal.
Answer

My Lords, I am grateful to my noble friend, who has made the position absolutely clear. Minimising tax payments is perfectly reasonable. Where it gets into the avoidance on which HMRC needs to focus is where people have minimised their tax payments in a way that HMRC believes to be contrary to the way in which Parliament intended the tax laws to operate.


Secondary information

Type
Oral question
Reference
721 c820 
Session
2010-12
Oral question type
Supplementary
Chamber / Committee
House of Lords chamber
Subjects
Tax avoidance
Link
View this Oral question on www.publications.parliament.uk