§ Lord Higginsasked Her Majesty's Government:
Further to the Answers by the Lord McIntosh of Haringey on 5 October regarding the taxation of savings (H.L. Deb., cols. 162–164), to what extent they consider the draft European Union directive on that subject will deal with the problem of tax evasion rather than tax avoidance. [HL3434]
§ Lord McIntosh of HaringeyThe draft directive is intended to help prevent illegal tax evasion—that is, failure by individuals to declare interest income received from a foreign source. It is not aimed at legal tax avoidance. My remarks during the debate on 5 October were entirely concerned with tax evasion, not avoidance.
§ Lord Pearson of Rannochasked Her Majesty's Government:
Further to the Answer given by Lord McIntosh of Haringey to Lord Higgins on 5 October (H.L. Deb., col. 163), whether they consider that the European Commission consulted adequately with interested bodies in the City of London and elsewhere before proposing its draft directive on the taxation of savings. [HL3438]
§ Lord McIntosh of HaringeyThe precise extent of prior consultation undertaken by the Commission is not clear. However, it is our view that adequate consultation of the financial sector is essential and we have urged the Commission to extend the range and scope of their external discussions. As I said in the debate on 5 October, the Government have already undertaken extensive consultation with the City on the draft directive.