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Written question asked by Baroness Quin (Labour), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Tuesday, 24 July 2012.

Taxation: Avoidance

Question

To ask Her Majesty’s Government on what evidence the Prime Minister’s spokesperson based his statement, reported in The Guardian on Tuesday 10 April, that some wealthy individuals were avoiding paying tax by donating money to charities that did not “in all cases do a great amount of charitable work”. [HL1574]

Answer

The vast majority of charities are bona fide and make an important contribution to society. However, the generous nature of tax reliefs available to charities

and their donors means that, unfortunately, Her Majesty’s Revenue and Customs (HMRC) sees cases of fraud and abuse.

The Government have been active in their response to tax avoidance schemes and can and do act as soon as they become aware of them. Their commitment to reducing abusive avoidance schemes has been further enhanced by their recent investment of over £900 million in HMRC for increased compliance activity.

Secondary information

Type
Written question
Reference
739 cc150-1WA; HL1574
Session
2012-13
Subjects
Charities Tax allowances Tax avoidance
Link
View this Written question on www.publications.parliament.uk