In a speech delivered at the World Economic Forum being held in Davos, Switzerland, Cameron outlined his three top priorities for the UK’s presidency of the G8 – more free trade, greater transparency and fairer tax systems.
It is of course not the first time Cameron has expressed his views on tax abuse. However, he did address concerns which have been voiced by some that the government’s rhetoric seems to suggest that people operating within the law are also a target.
“I know there is a difference between tax evasion and avoidance,” said Cameron. “Evasion is illegal. It can – and should – be subject to the full force of the criminal law. But what about avoidance?
“There’s nothing wrong with sensible tax planning – and there are some things governments want people to do to that reduce tax bills, such as investing in pensions, start-up businesses or charities.
“But there are some forms of avoidance have become so aggressive that I think it is right to say – these raise ethical issues – and it’s time to call for more responsibility and for governments to act accordingly.”
Cameron went on to say that tackling tax evasion and aggressive tax avoidance is “not anti-capitalism” explain that in order to keep taxes low you have to “keep taxes coming in”.
