Categorized | news

Coalition government will be on the lookout for tax evaders

Coalition government will be on the lookout for tax evaders

Danny Alexander likened tax evaders to benefit cheats when he unveiled the government’s new plans to crackdown on fraud and tax avoidance.

The Treasury chief secretary told the Lib Dem party conference that some people think it is socially acceptable not to pay their fair share of tax, whereas in reality it is morally indefensible.

He went on to say that the coalition will be ruthless with businesses, contractor accountants and individuals who believe paying tax is an optional extra. To help catch tax evasion offenders, the government plans to make £900m available to HMRC, a measure which could see £7bn a year in lost taxes recovered by 2015.

Some of the money will be spent on setting up a dedicated team of investigators who will focus on online tax evasion as well as offshore tax havens. The hope is that this team will increase the number of prosecutions against tax evaders five-fold. HMRC will also be able to utilise the services of private debt collectors in order to recoup outstanding taxes.

John Whiting from the CIoT said that tax advisers will welcome the news. By cheating HMRC, offenders are robbing the government of the money it needs to fund public services and that has the knock-on effect of making everybody suffer.

However, not everyone is convinced by the new plans. Richard Murphy from Tax Research UK says that the problem is systemic and therefore it can only be tackled by systemic reform.

Robert Gaines-Cooper, the British born entrepreneur who fought a long running battle with the Revenue over his tax residence status, said that the government thinks of the words avoidance and evasion as meaning the same thing. He says that avoiding taxes is OK as long as it’s done legally, whereas evasion is definitely illegal.

© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.

Image: Beach Viewer HDR B+W by rockmixer

Be Sociable, Share!

Leave a Reply

You must be logged in to post a comment.

  • Switch Accountants for FREE

    Switch Accountants for FREEAt K&B Accountancy Group we have introduced a simple and straightforward approach to changing accountants. We’re offering contractors, consultants and freelancers the opportunity to switch to K&B Accountancy Group for FREE without the need to pay for any ‘catch up’ or retrospective accountancy fees for the previous year’s accounts and corporation tax return* *T&Cs apply

our top 5 twitter posts

twitter

contractor accountants

contractoraccts



twitter Join the conversation
Free Telephone Advice