SELLING TAX AVOIDANCE SCHEMES

Early day motion 742, tabled 22 February 2005 by Austin Mitchell (Labour). Signed by 32 members.

That this House is concerned that KPMG has been developing, marketing and selling sometimes by cold-calling, VAT avoidance schemes which it knew would be `unacceptable', and which it admits in its marketing document are suspect by saying that `In our view HM Customs and Excise will regard these planning arrangements as "unacceptable tax avoidance" and will seek to challenge the arrangements'; notes that, contrary to all the rules of professional bodies, the firm sold the schemes on a contingency fee basis; observes that the firm has already been condemned by the US Senate Permanent Subcommittee on Investigations and is being prosecuted by various authorities for selling illegal tax avoidance schemes in the US; and therefore urges the Government to investigate KPMG and other accountancy firms engaging in such dubious activities in the UK urgently to introduce stronger measures against the schemes and, where necessary to close down firms selling illegal tax avoidance schemes that enable companies to escape their tax obligations in this country and burden everyone else with higher taxes as a result.

Signatures by party: Labour 22, Liberal Democrat 6, Labour/Co-operative 4.