View more on these topics

Govt outlines ‘comprehensive’ new tax evasion regime

Liberal Democrat Treasury chief secretary Danny Alexander has outlined harsh new penalties as part of Government plans to raise £3.1bn in a clampdown on tax evasion.

Speaking in the House of Commons today, Alexander said the Government will introduce new penalties for both evaders using offshore accounts and companies found to have aided, or failed to prevent, tax dodging.

Under the plans, tax dodgers will see their fines linked to underlying assets held in offshore accounts, while facilitators will face a bill equal to the amount owed.

Alexander said: “A billionaire evading £5m of tax won’t just be liable for that £5m…if you help someone evade £1m of tax, you risk a penalty of £1m or even more yourself.”

Alexander added that HMRC will benefit from expanded powers to “name and shame” both evaders, and those who enable evasion.

The changes come in addition to widely expected reforms to introduce a new strict liability criminal offence, meaning that those who fail to disclose offshore accounts will have no defence against charges of evasion.

Alexander also sought to lay out alternative Lib Dem plans, which he said would see less borrowing than the Labour party and fewer cuts than the Conservatives.

Alexander said the Lib Dems would seek to raise a further £6bn in unpaid tax, as well as £6bn in additional tax rises.

In addition, he said the Lib Dems would make a further £12bn in departmental savings, and generate £3.5bn from welfare savings.

Although Alexander did not detail precisely where tax bills would increase, he said: “Those in high-value properties, the banking sector, and others should pay more, rather than asking those working on low incomes to accept less.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com