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AS 2012: Govt to raise further £2bn per year in tax crackdown

George Osborne Podium 480

Chancellor George Osborne has confirmed his intention to raise a further £2bn per year in a crackdown on tax avoidance.

In his Autumn Statement, announced today, Osborne said HMRC would not see its budget cut, unlike other Government departments, with an extra £77m in resources applied to dealing with tax avoidance.

The spending will partly be used for HMRC to set up a new centre of excellence staffed by experts in tax fraud and evasion.

The funds will also be used for accelerating the resolution of avoidance schemes, expanding HMRC’s affluent unit, increasing specialist resource to tackle offshore avoidance and inheritance tax and improving HMRC technology and increasing use of third party data.

The Autumn Statement says further details of the Governments tax evasion strategy will be announced in spring 2013.

Osborne also confirmed the Government’s intention to clampdown on multinational companies who do not pay their fair share of tax.

He added the Government would crackdown on money hidden in Swiss bank accounts which would raise £5bn over the next six years.

The Government has entered into an agreement with its Swiss counterparts to recover previously unpaid UK tax money hidden in Switzerland.

Through this UK bank accounts held in Switzerland will be subject to a one-off levy. The Swiss government will also be able to impose a witholding tax on tax evaders’ accounts.

Osborne said: “We are closing tax loopholes and we are investigating abusive use of partnerships. HMRC will not be one of the departments to have its budget cut and we will be putting in a further £77m to crack down on tax avoidance.

“In total we expect the action announced today to raise a further £2bn per year. There are still too many who illegally evade tax in order not to pay their share.”

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