Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a640082

Autumn Statement: Chancellor announces corporate tax evasion clampdown

by Annabelle Williams on Dec 05, 2012 at 13:09

Autumn Statement: Chancellor announces corporate tax evasion clampdown

George Osborne has unveiled plans for a general anti-avoidance rule (GAAR) as he seeks to clampdown on ‘unacceptable’ tax avoidance.

Details of the GAAR will be unveiled later this month, and the chancellor also confirmed today an extra £77 million will be handed to HMRC in a bid to improve enforcement of tax law on multinationals.

With this move the governement expects to bring in an extra £22 billion in revenue from tax avoidance before the next election.

'HMRC's budget will not have its budget cut as other departments. Instead we will spend £77 million more on fighting tax avoidance - and not just for the wealthy,' he said.

The money will go towards setting up a new 'centre of excellence' which the government says will mean a 'marked difference' to HMRC's ability to end offshore tax evasion.

A more comprehensive strategy document laying out HMRC's plans to clamp down on tax avoidance will be released in spring next year, but Osborne did say that 2,500 extra tax inspectors will be brought on board and four tax loopholes would be closed.

The news follows public outcry over the low levels of tax paid by multinationals including Starbucks, Amazon and Google after the corporates gave evidence to the Commons public accounts committee in November.

Committee chair Margaret Hodge said that HMRC should be ‘more aggressive and assertive’ in addressing corporate tax avoidance.

Many multi-jurisdiction businesses use ‘transfer pricing arrangements’, where offices registered overseas are used to take profits out of the UK and thus reduce the overall corporation tax bill.

UK based companies – which pay corporation tax on their taxable profits wherever they are made -  have spoken out against the practice, arguing the government should do more to level the playing field in corporation tax. 

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Long time coming: is the recovery here to stay?


Ian McVeigh and Steve Davies, managers of Jupiter's UK Growth fund, talk about their predictions for the UK equity space. Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.

Today's top headlines

More about this:

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet