Balls pledge on tax evasion crackdown

Written By Unknown on Minggu, 15 Februari 2015 | 19.21

15 February 2015 Last updated at 12:15
Ed Balls

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Shadow Chancellor Ed Balls: "We want to collect the tax. We'll toughen up the law"

The shadow chancellor has promised that a Labour government would crack down on what he called "systemic tax evasion".

Speaking on the Andrew Marr programme, Ed Balls made the distinction between families who legitimately plan their tax affairs and those who, in his words, "set up false structures".

He accused the Conservatives of "turning a blind eye" to tax evasion.

And he defended Ed Miliband over criticism about the Labour leader's tax affairs.

Mr Balls said: "We are the party who will crack down on tax planning and on systemic practices, where people are trying to avoid paying the tax parliament intends in order to get around the law.

"That's wrong, and we will act in a way the Tories haven't. We will look at every area of tax law."

He said some schemes to reduce tax payments were legitimate, citing cases such as individual savings accounts (ISAs) and tax relief for entrepreneurs.

And he added: "We have ways in which people can sensibly plan for their children and for their death and for their inheritance, but if people are actually setting up false structures to avoid paying their tax or going off to live in Switzerland in order to avoid paying their fair share in tax, we will crack down."

His comments come after a week in which the issue of tax avoidance has been at the top of the political agenda.

Following allegations that HSBC had helped hundreds of wealthy individuals avoid or evade tax, Mr Miliband attacked the Conservatives over what he called their "dodgy donors".

He also became embroiled in a row with former Tory party treasurer Lord Fink over the peer's tax affairs, and on Saturday announced that, if elected, he would launch a full-scale review of HM Revenue and Customs' approach to tax evasion and avoidance.

Mr Balls said: "The evidence is the Conservatives from the treasury and Number 10 turned a blind eye to what was happening at HSBC and that is what makes people angry. The idea that there's one rule for everybody else.

"They crack down on benefit cheats but when it comes to the rich and powerful they don't ask the questions. For a week we had no word from the treasury ministers at all as to why this has been such a failure in the treasury and the HMRC. We're the ones who will act."

He added: "At any point in past and in the future if I am the chancellor I will not turn a blind eye to law breaking."


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