George Osborne has revealed the Governments latest plans in a bid to tackle tax avoidance and tax evasion including those who use offshore accounts and crackdown on those who use a legal loophole to avoid inheritance tax.
The Chancellor used his budget to announce a review of deeds of variation which allows changes to be made to wills after someone’s death. It is also hoped that £3.1bn, lost through tax evasion and avoidance, will be clawed back over the next five years.
It was also announced by Danny Alexander, George Osborne’s second in command, that large corporations would become criminally liable for failing to prevent economic crime in their organisations.
Danny Alexander said “We are going even further. We are making it a crime if companies fail to put in place measures to stop economic crime happening in their organisations”
“Tax evasion is a crime like any other. If people help a burglar, they are accomplices and criminals too. Now it will be the same for those who help tax evaders” he said.
George Osborne promised that HMRC would issue more “accelerated payment notices”. These allow the taxman to demand payment upfront of disputed tax figures.
The Chancellor also stated that the Liechtenstein Disclosure Facility, which allows taxpayers to disclose hidden assets to HMRC with some remarkable benefits, would be closed by the end of the year. It will be replaced by a similar, less lenient scheme. It is hoped that this will boost the exchequer by £560m over the next five years.
He also stated that the Diverted Profits Tax (DPT) announced in December, which is aimed at large multinationals who artificially shift their profits offshore, will be brought in to effect at the end of next month.