Tax Avoidance (Hansard, 23 March 1976)

§ Mr. Cryer
asked the Chancellor of the Exchequer if he will ensure that expense claims by persons attending personal tax avoidance conferences are not allowed.

§ Mr. Robert Sheldon
Expenditure is allowable as a deduction for tax purposes only if incurred wholly and exclusively for the purposes of a trade profession or vocation; or wholly exclusively and necessarily in the performance of the duties of an office or employment. Whether or not any particular expenditure fell to be allowed could be judged only by reference to the facts of the particular case.

§ Mr. Cryer
asked the Chancellor of the Exchequer if he will introduce legislation

International Monetary Fund Foreign currency deposits by monetary authorities $ million Other borrowing with a sterling counterpart^*

1961–65

Net Borrowing (+): Repayment (-) … +2,370 — +913

1966–70

Net Borrowing (+): Repayment (-) … -42 — +45

1971–75

Net Borrowing (+): Repayment (-) … -2,328 — -958

^* Borrowing from monetary authorities, a consortium of Swiss banks in 1967 and Switzerland in 1964–65 as a sterling counterpart to foreign currency deposits.

Non-dollar currencies have been converted to dollars at the parity or central rates obtaining at the end of the appropriate months.

In addition British Government Stocks and Treasury Bills are held by overseas monetary authorities. It is only possible to give net changes for these holdings and during the periods in question the movements were as follows:—

£ million

1961–65^* 1966–70 1971–75

British Government Stocks … … … … + 29 +308 -260

Treasury Bills … … … … -225 -329 +807

^* Figures for the holdings of British Government Stocks and Treasury Bills were only recorded from end-1962 onwards.

134W
to prohibit conferences promoting tax avoidance for company chairmen, managing directors, financial directors and accountants and other persons.

§ Mr. Robert Sheldon
No. Tax avoidance—as distinct from evasion of tax—is not illegal. In the nature of the case it amounts broadly to organising one's affairs so as to effect savings of tax within the tax law and conferences about it could not be made criminal.

		International Monetary Fund	Foreign currency deposits by monetary authorities	$ million Other borrowing with a sterling counterpart^*
1961–65
Net Borrowing (+): Repayment (-)	…	+2,370	—	+913
1966–70
Net Borrowing (+): Repayment (-)	…	-42	—	+45
1971–75
Net Borrowing (+): Repayment (-)	…	-2,328	—	-958
^* Borrowing from monetary authorities, a consortium of Swiss banks in 1967 and Switzerland in 1964–65 as a sterling counterpart to foreign currency deposits.
Non-dollar currencies have been converted to dollars at the parity or central rates obtaining at the end of the appropriate months.
In addition British Government Stocks and Treasury Bills are held by overseas monetary authorities. It is only possible to give net changes for these holdings and during the periods in question the movements were as follows:—

£ million
					1961–65^*	1966–70	1971–75
British Government Stocks	…	…	…	…	+ 29	+308	-260
Treasury Bills	…	…	…	…	-225	-329	+807
^* Figures for the holdings of British Government Stocks and Treasury Bills were only recorded from end-1962 onwards.