David Lammy – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by David Lammy on 2016-04-12.

To ask Mr Chancellor of the Exchequer, what recent assessment he has made of the implications of the leaked documents relating to the operations of Mossack Fonseca for HM Revenue and Custom’s policy on investigating and tackling tax evasion and avoidance using offshore vehicles.

Mr David Gauke

The Government has introduced tough new powers and game-changing measures to tackle offshore and onshore tax evasion, and as recently as the summer Budget 2015 gave HM Revenue and Customs (HMRC) an additional £800 million to invest in expanding compliance and tax evasion work. This is expected to recover £7.2 billion in tax over the next five years.

The Government is introducing a criminal sanction for corporates facilitating tax evasion, and launching a taskforce, jointly led by HMRC and the National Crime Agency (NCA). Drawing on investigators, compliance specialists and analysts from HMRC, NCA, the Serious Fraud Office (SFO) and the Financial Conduct Authority (FCA), its purpose will be to swiftly obtain and analyse the Mossack Fonseca papers and take rapid action where there is evidence of wrongdoing. The taskforce will look beyond tax into all potential areas of financial crime and other regulatory breaches.

The taskforce will provide a progress report to the Chancellor and Home Secretary later this year. The report will set out the their initial assessment of the information in the Panama papers and proposed actions for further analysis and strategy for pursuing any evidence found of wrongdoing and regulatory breaches.

Additional resourcing of £10m will ensure that the taskforce’s work can be done on top of departmental commitments. Where resource is moved into the task force, existing roles will be back filled as soon as possible.