MPs push for anti-avoidance clause

Link: Brown to clamp down on corporate tax avoidance

So far, seven have signed a Commons motion which urges legislative action to create a general anti-avoidance principle in tax law ‘as a matter of priority’.

The motion said that ‘transactions lacking normal commercial substance and solely entered into for the purpose of tax avoidance’ should be ignored for tax purposes ‘thereby providing certainty, fairness and clarity which the UK taxation system required to prevent abusive tax avoidance’.

Grimsby Labour MP Austin Mitchell said his aim was ‘to protect the interests of ordinary citizens who are committed to making their contribution to society’ and ‘to avoid an unnecessary burden of tax on individual taxpayers and to ensure that companies pay fair taxes on profits generated in this country’.

Signatories include Newcastle Central Labour MP Jim Cousins, a member of the Commons Treasury Committee, and Chesterfield Lib Dem MP Paul Holmes.

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