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Lib Dems plan tax evasion clampdown; HMRC beefed up
20 September 2010
The government is pledging to raise up to £7bn a year by 2015 by clamping down on "morally indefensible" tax evasion, a senior Lib Dem minister has said. Speaking at the party's conference, Treasury chief secretary Danny Alexander announced plans to attack offshore havens and other tax "dodges", the BBC reports. Ministers want to see a fivefold increase in prosecution for tax evasion and Revenue & Customs will be given extra resources to create a dedicated team of investigators to crackdown on offshore tax havens and online tax evasion. Treasury officials say the amount collected would equate to £8 for every £1 invested by HMRC. However, it is unclear what this clampdown will mean for non doms or for people who might be resident for tax in places like Monaco but earn most of their money in the UK. Unveiling plans agreed with Chancellor George Osborne, Alexander said authorities would get £900m extra in financial support for the "ruthless" pursuit of tax evaders and those who use legal loopholes to minimise their tax bills. "There are some people who seem to believe that not paying their fair share of tax is a lifestyle choice that is socially acceptable," he said. "Just like the benefit cheat, they take resources from those who need them most. Tax avoidance and evasion are unacceptable in the best of times but in today's circumstances it is morally indefensible. "We will be ruthless with those often wealthy people and businesses who think they can treat paying tax as an optional extra." Tax evasion and avoidance cost the Treasury an estimated £14bn a year. Published by IFAOnline
