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UK Treasury Department Approves New Penalties For Tax Evasion

UK TreasuryIn one of the several new laws being introduced by the government to deal with tax evasion, HMRC or HM Revenue and Customs department based in the United Kingdom now has the power to list all the financial intermediaries who act as enablers for the ultra-rich for evading tax.

All corporations and individuals who are facilitating in the tax evasion by clients, under the new laws granted by the department will be penalised with 100 percent of tax amount that helped them evading or 3000 pounds, whichever is high. The newly created law will is likely to cover lawyers, tax advisers, accountants and other people who are assisting in tax evasion.

George Osborne who is the previous Chancellor introduced this measure in the last budget in 2015 and intermediaries will be held responsible for evasion of tax for the very first time. The new companies will be held accountable for any avoidance of tax carried out by people who are working on their behalf. Any such action will be treated as a criminal offence at the corporate level by the law.

Earlier, the prosecution of cases related to the evasion of taxes of corporate was carried out when it was proved that the board of directors of the company concerned were involved in it. From January 2017, taxpayers will be required to correct instances of evasion of tax in the past according to a new bill being put into place.

The newly introduced laws are strict and anyone is failing to be in line by 30 September 2018 will be criminally prosecuted.

The Treasury’s financial secretary Jane Ellison has made the following statement in public:

Tax evasion is a crime and as a government, we have led the reform of the international tax system to root it out. Closer to home we are creating a tax system where taxes are fair, competitive and paid. The raft of measures we have introduced to tackle avoidance and evasion will create a level playing field for the vast majority of people and businesses who play fair and pay what is due.

The Department of Treasury has further stated that they are going to put some strict measures that include public consultation which requires the business based in the United Kingdom to inform HMRC when they involve themselves into any offshore deals or similar kind of arrangements. Theresa May, the Prime Minister of United Kingdom has taken a vow in which she will pursue all individuals and companies concerned who are trying to avoid tax.

According to a report, HMRC has made a collection of 2.5 billion Pounds from people who are evading tax offshore. Despite having identified more than 6500 individuals amounting to more than 2 billion pounds, the department has been severely criticised as it criminally prosecuted only one individual.

Steven Rudford

Steven Rudford

Hello, my name is Steven Rudford. Welcome to Top10FX.net. Follow my website for the most trustworthy Forex broker reviews and last minute financial trading news.

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