To ask the Chancellor of the Exchequer
(2) what effect he estimates the bankruptcy of individuals required to pay tax retrospectively under section 58 of the Finance Act 2008 will have on HM Revenue and Customs revenues.
UK residents are taxable on their worldwide income wherever it arises, including situations where it arises by way of foreign partnerships. Section 58 of Finance Act 2008 was enacted to help put that beyond doubt and in so doing, made clear that a wholly artificial tax avoidance scheme involving a foreign partnership comprised of foreign trustees did not work. The total tax at stake in respect of this scheme is estimated to be £230 million.