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Budget 2013: Billions to be clawed back as govt 'won't tolerate' tax abuse
by Sarah Miloudi on Mar 20, 2013 at 14:14
The coalition government has warned it 'will not tolerate' ax avoidance as a range of aggressive anti abuse measures were unveiled.
George Osborne said HM Revenue & Customs (HMRC) had created a detailed offshore tax evasion strategy, and across the board its UK-US tax co-operation rules will be improved along with a continued crackdown on the transfer of assets abroad.
Taking the lead, HMRC rolled out its offshore tax abuse strategy to coincide with the Budget.
It said avoidance would be tackled in three key ways:
• Reducing opportunities to evade offshore using initiatives to ensure compliance, international agreements, and multilateral action;
• Increasing the likelihood of evaders, and those who make offshore evasion possible, being caught; and by
• Imposing tougher penalties.
The government is expected to claw back £1 billion through its anti avoidance measures with the Isle of Man Guernsey and Jersey agreements and £5 billion from the UK-Swiss agreement.
Part of HMRC's plan is catching more evaders, and investing more in the skills of specialist staff who can comb data for possible traces of avoidance.
The government said that between 2010 and 2015, HMRC had been allocated an extra £994 million to tackle avoidance.
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