Barclays tax documents in public interest - Cable (Aberdeen South & North Kincardine Liberal Democrats)

Aberdeen South & North Kincardine Liberal Democrats <info@aberdeensouthlibdems.org.uk>

Barclays tax documents in public interest - Cable

March 17, 2009 12:43 PM
Originally published by Scottish Liberal Democrats

Liberal Democrat Shadow Chancellor Vince Cable today criticised Barclays for obtaining a court order banning The Guardian from publishing documents showing how the bank set up companies to avoid paying hundreds of millions of pounds in tax.

He has offered to provide a witness statement to support the press in court.

Liberal Democrat Federal Leader Nick Clegg will later today meet with the Group CEO of Barclays, John Varley, where he will discuss a number of issues including tax avoidance.

Commenting, Vince Cable said:

"These documents are clearly of immense public interest, suggesting as they do a systematic attempt to avoid paying tax.

"At a time when banks are receiving massive support from the Government, the public has a right to know if those same banks are also trying to avoid paying their tax bills.

"Barclays is negotiating for substantial government backing under the Asset Protection Scheme. The Government must make it an absolute pre-condition that tax avoidance at the expense of the taxpayer should stop.

"The scale of tax avoidance by banks has not been previously exposed because it is so hard to report on. These documents provide chapter and verse on the banks' activities. Banks have been able to hide behind commercial confidentiality and threats of legal action to prevent their tax avoidance becoming known.

"There needs to be an open discussion of the banks' tax avoidance and its role in causing the financial crisis. Allowing independent tax professionals to examine these documents is vital to regulating the banks in a way that properly protects the UK taxpayer."

Notes;

1. The documents were received from a whistleblower by email. They have been sent to HMRC and the Financial Services Authority

2. Vince Cable raised the issue of tax avoidance in yesterday's Parliamentary debate with Alistair Darling:

"I welcome the Chancellor's comment in his statement that he will produce a code of conduct on tax payments by British banks, but why can the Government not simply stop tax avoidance in banks that are being helped by the British taxpayer? Can he confirm that RBS has stopped its tax avoidance activities? Can he answer the question that I put to his Financial Secretary last week, which is whether Lloyds, now it has been rescued, has agreed to stop some publicly identified tax avoidance devices carried out on a large scale?

"Since the Chancellor is negotiating with Barclays on its tax avoidance activities, some of which I put into the public domain-indeed, I sent details to the Inland Revenue-can he make it clear that any assistance under that insurance scheme will be made absolutely conditional on Barclays stopping its tax avoidance activities?"