One rule for all

Name one tax issue on which all three main political parties, the TUC and the Association for Accountancy and Business Affairs are all agreed? The need to close offshore and onshore tax loopholes that allow the super-rich and wealthy foreigners living in the UK to escape large tax bills. Gordon Brown, in opposition, was adamant about the need to plug the loopholes and even hinted in March that he was contemplating moves which did not materialise in the Budget. There was united political support from Labour backbenchers, the Liberal Democrats and even a former Tory minister for firmer action in response to Nick Davies's series on tax avoidance schemes six weeks ago. Last week Rob Evans and David Hencke, in a separate series, documented how the rich were escaping three types of taxes - inheritance, stamp duty and capital gains - by registering their homes with offshore trusts. Later last week, Alan Travis set out the complex arrangement that allows the Queen to avoid paying income tax on at least £1.5m of her private income. Belatedly, last Friday, the courts plugged one gap.

A ruling in Edinburgh by Scotland's most senior judge, Lord Gill, has left a secret inland revenue strategy - that al lowed the super rich to negotiate a fixed tax sum each year without declaring their real earnings - in tatters. These "forward contracts" were ruled illegal on the most fundamental democratic principle: "It cannot be proper exercise of the inland revenue's statutory powers and duties for them to make an agreement with an individual by which he can in effect operate outside the tax system." The judge rightly concluded that the inland revenue had "stepped outside" its duty to collect tax and simply accepted a payment in return for which it had agreed not to do its job.

Yet despite the ruling, the inland revenue has no plans to go back into the tax affairs of those who have benefited from the contracts, nor will it cancel contracts that are in place. Those that have expired during the two years of legal arguments over the case have been allowed to lapse, but the revenue refuses to say they will never be used again. Time for parliament to step in. Most taxpayers will be paying more tax from the next Budget to meet increased investment in health, education and public services. It is time the rich paid their fair share. The Treasury select committee should hold an inquiry, calling Mr Brown as its first witness.