Prime Minister urged to tackle tax avoiders
August 18, 2010 4:04 PM
Prime Minister David Cameron has been challenged to show the same enthusiasm in tackling people who cheat on their taxes as he has on those guilty of Benefit fraud.
It has been made by Liberal Democrat MP Bob Russell who in a second challenge has called on retail tycoon Sir Philip Green - appointed to eliminate waste in Whitehall - to name and shame those companies who engaged in tax-avoidance.
Mr Russell, MP for Colchester, said: "If tax avoidance was dealt with effectively then there would be less need to undertake the level of cuts which the Coalition Government is proposing.
"Will people who do not pay the correct level of income tax, who use cash in hand payments to avoid Value Added Tax, and UK companies who use VAT havens in the Channel Islands to avoid paying UK VAT, feature in Sir Philip's 'Efficiency Review'?
He added: "Perhaps a specific investigation could look at how companies operate to minimise tax payments when morally they are not justified.
"If full tax was collected then there would be less need for the Coalition Government to make cuts.
"By all means lets tackle inefficiency and fraud, as in Mr Cameron's comments on Benefits fraud, but fairness demands that abuses in the tax system also need to be addressed."
Mr Russell was one of two Liberal Democrat MPs who voted against the Coalition Government's decision to increase Value Added Tax from 17.5 per cent to 20 per cent.
In a separate challenge to the Prime Minister, Mr Russell asked: "When are you going to launch a campaign against those who cheat on Income Tax, businesses 'using the system' to avoid paying all the taxes they should, and big company 'dodges' over Value Added Tax purchases via the Channel Islands?"
He added: "Benefit cheats need to be tackled. But what about the Tax cheats? They, and those responsible for the banking crisis, are more responsible for Britain's financial problems than Benefit cheats. All should be tackled in the same way.
"So, Mr Cameron, when will you launch a campaign against Tax cheats?"
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