Avoidance

 


This a live blog of the emergency debate in the House of Commons about the 'Paradise Papers', held on November 14th. The Paradise Papers is the name given to a huge leak of documents, mostly from the law firm Appleby, which has thrown light on the world of offshore finance.

The leak of 13 million documents, mostly from the law firm Appleby, and follow up reporting by the Guardian, BBC Panorama and others, has once again opened up the debate about international tax both for corporates and for private individuals.

In response to an urgent question from the opposition, Financial Secretary to the Treasury Mel Stride made a statement and took questions from MPs on the revelations contained in the first extracts of the so-called ‘Paradise Papers’.

Buoyed by HMRC’s recent victory in the Court of Session against Glasgow Rangers’, the Chancellor of the Exchequer struck a further blow against Employee Benefit Trusts (EBTs) in his March Budget.  Amongst a number of anti-avoidance measures, he announced that legacy loans to employees and former employees made by EBTs before the Finance Act 2011 rules on ‘disguised remuneration’ came into play will now be judged offside and subject to a new PAYE (and NIC) charge if still outstanding on 5 April 2019.