Tax Planning and Avoidance

HC Deb 27 March 1995 vol 257 c429W

Sir Thomas Arnold

To ask the Chancellor of the Exchequer how he distinguishes between tax planning and tax avoidance. [15583]

Sir George Young

[holding answer 23 March 1995]: In broad terms, the Government regard tax planning as the organisation of a taxpayer's affairs to secure the mitigation of tax liabilities in a manner consistent with the intentions of Parliament. Tax avoidance centres around attempts to frustrate the wishes of Parliament, either by way of escaping tax on transactions, or obtaining tax relief, in circumstances other than those intended by Parliament.