Jesse hails new anti-tax abuse rule on Newsnight

Local MP Jesse Norman has hailed a new government move to impose a general rule against inappropriate tax avoidance and abuse. He was interviewed by Emily Maitlis on the BBC's Newsnight programme alongside the Lib Dem Deputy Leader, Simon Hughes MP.

An expert review for the Treasury by Graham Aaronson QC had concluded that such a rule could deter abusive tax avoidance schemes, help to create a more level playing field for business, and reduce legal uncertainty over tax avoidance schemes, while offering opportunities to simplify the tax system.

Speaking after the programme, Jesse said:

"We are living in a time of crony capitalism. Some large companies appear to be abusing the tax system, while small businesses pay huge penalties for tiny infractions of the tax code--including many small local businesses here in Herefordshire, who have come to me for help.

"The state often gives tax incentives in order to encourage saving and investment, for example through ISAs and capital allowances. That is good and proper. But this is about combatting abuse of the tax laws, which is quite different.

"I am delighted that the new government will be taking action in this important area."