Budget contains new measures to prevent tax abuse
HM Treasury have announced in the 24 March 2010 Budget a series of measures aimed at preventing tax abuse to ensure that individuals and business pay their fair share of tax. The measure include new penalties for failure to pay taxes due on offshore income or gains, with penalties of up to 200 per cent of tax for deliberate and concealed evasion; a measure to amend the legal provision for a reverse charge to combat Missing trader intra-community fraud in goods to enable it to apply equally to services; and provisions to strengthen the Disclosure of Tax Avoidance Schemes regime such as enhanced penalties for failure to disclose a scheme.
The Treasury state the global economic crisis and the response to it have changed the political environment. There is a new momentum for change. This has been a catalyst for concerted international action in areas like tax transparency and tackling avoidance and evasion. The Government states it is taking further action to change the game for those seeking to bend or break the rules on tax.
The Budget includes measures to tackle avoidance and evasion, including enhancements to strengthen the disclosure regime and new penalties to combat offshore evasion. The package of measures aims to raise £1.5 billion in additional yield and protects a further £4 billion of tax receipts by 2012-13.
If you or your business have any questions regarding the issues raised in the article regarding tax evasion or tax investigation please contact solicitors Maurice Martin or Sarah Wallace on 0370 1500 100 or 020 7421 3883.