The UK government said on Monday that it planning a new proposal which is designed to force finance companies to hand over the client lists of tax dodgers in a new plan which is intended to curb tax avoidance schemes.
The new proposal by the UK government is said to be part of a consultation intended to curb tax avoidance. According to a report by the BBC released today, treasury minister David Gauke will tell the Policy Exchange think tank that operators of tax avoidance schemes will be “named and shamed” if they do not sticking to the rules.
According to the Treasury tax avoidance is said to represent almost 14% of the tax gap in the UK. Under the new proposals promoters of tax avoidance schemes in the UK will be forced to hand over customer databases in an effort to counteract the difficulties often encountered by officials when investigating schemes which are based off-shore.
Although these schemes are not illegal firms which use them will have to say how all their tax avoidance schemes work, not just the ones for which they are being pulled up. These new proposals are being considered alongside plans to legislate tax avoidance through a general anti-avoidance rule. Companies who flout the new rules could face fines in excess of GBP1m.
Gauke said “We are building on the work we have already done to make life difficult for those who artificially and aggressively reduce their tax bill…These schemes damage our ability to fund public services and provide support to those who need it.”