Lord Sikka, “Why is the Conservative government so relaxed about off shore tax avoidance?”
Baroness Vere, “The government is not relaxed about off shore tax avoidance.. All tax avoidance does need to be stamped out”
The noble Lady is a Parliamentary Secretary in HM Treasury
In that job you’d think that she’d understand the difference between Tax Evasion and Tax Avoidance wouldn’t you? Here’s an idiots guide:
Lady Vere says she wants to “stamp out” something that is not only perfectly legal but actually encouraged by Government – e.g. with an ISA. YOU pay no Income Tax on the interest or dividends you receive from an ISA and any profits from investments are free of Capital Gains Tax.
There probably is a case for reforming Offshore Tax avoidance as Lord Sikka said. But Lady Vere went way beyond that. Slip of the tongue? Possibly. Culpable ignorance. Quite likely.
Paddy’s Blogs in a crazy world 