A Labour government will close loopholes left by the Conservatives that allow the mega-rich to avoid paying tax, Labour’s Shadow Financial Secretary to the Treasury has said.
James Murray told GB News: “One part of our plan is to remove the loopholes which the Government has left open for non-doms in their plans to follow our lead and close the non-doms tax loophole this year.
“As you may remember, we've been setting out for a number of years about ending a non-dom tax status, the Government said they wanted to follow our lead after years of saying they wouldn't, but they're leaving open loopholes in that which means that people can avoid paying hundreds of millions of pounds of tax.
“We want to close those loopholes but that's part of a broader approach to investment in HMRC to improve compliance.”
In a discussion during Breakfast with Eamonn Holmes and Isabel Webster, he continued: “One of the areas where it's important to focus on, for instance, is on some of the larger businesses where they will have tax affairs which are more complicated, where the sums of money we're talking about are greater.
“That's a really important place to focus efforts to make sure people and businesses are paying the taxes that they owe...
“After years of opposing us, the Government U-turned and followed our lead, but the Government has still left holes in their plans, they still left loopholes w0hich means that non-doms will get away without paying hundreds of millions of pounds of tax that they should be paying.
“We will close those loopholes as part of our wider efforts to improve compliance and crack down on tax avoidance because that's money that we’re owed as a taxpayer and should go into the NHS and breakfast clubs as we set out.”
Asked about multinational companies, he added: “Well, that has been a piece of work over the last few years about some of those large multinationals, making sure that they pay their fair share of tax and we've been pushing the Government to take action on that as part of an international deal to make sure that we end that race to the bottom.
“Because otherwise, what some large multinationals do is shift their profits around to areas where there are lower effective tax rates and avoid paying their fair share.”
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