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The document outlines the UK government's strategies for addressing tax evasion and avoidance, which include: 1) Investing in the HMRC to detect and prosecute evasion and avoidance through increased investigations, legal challenges, and criminal prosecutions. 2) Encouraging voluntary disclosures and prosecuting those who do not come forward. 3) Recruiting more criminal investigators to increase prosecutions of tax evaders. 4) Working with international organizations like the OECD and G20 to update international tax standards and prevent multinational corporations from shifting profits to avoid taxes.

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Girish Sreeneebus
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166 views3 pages

Mun

The document outlines the UK government's strategies for addressing tax evasion and avoidance, which include: 1) Investing in the HMRC to detect and prosecute evasion and avoidance through increased investigations, legal challenges, and criminal prosecutions. 2) Encouraging voluntary disclosures and prosecuting those who do not come forward. 3) Recruiting more criminal investigators to increase prosecutions of tax evaders. 4) Working with international organizations like the OECD and G20 to update international tax standards and prevent multinational corporations from shifting profits to avoid taxes.

Uploaded by

Girish Sreeneebus
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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We are working to prevent evasion and avoidance, detecting it early where it arises, and
counteracting it effectively through investigation and legal challenge.
We are investing in HMRC to prevent tax avoidance and evasion. In 2010 the government
allocated HMRC 917 million from efficiency savings to reinvest in generating additional
compliance revenues of 7 billion a year by 2015.
In the Chancellors 2012 Autumn Statement, HMRC received a further 77 million for
specific additional projects aimed at reducing evasion and avoidance.
At the G8 summit in June 2013 we announced steps towards achieving greater international
tax transparency to prevent offshore tax avoidance and evasion.

Giving people opportunities to declare what they owe


We are running campaigns to encourage people to tell HMRC what they owe, before we track
them down. So far, HMRC has raised 547 million from voluntary disclosures, and almost
140 million from follow-up activity including 20,000 completed investigations.

Prosecuting more people who break the law


HMRC is taking swifter legal action against those who dont come forward and sort out their
taxes. We are also allocating more resources to increase the pace and number of tax evasion
cases being brought before the criminal and civil courts.
We are setting up local task forces to identify and deal with tax cheats, using criminal and
civil powers.
We are prosecuting more people who break the law by evading tax. We have recruited an
additional 200 criminal investigators to increase the number of people prosecuted for tax
evasion from 165 in 2010 to 2011, to 565 in 2012 to 2013, and to 1,165 in 2014 to 2015.

Preventing avoidance by large multinational corporations


Some multinational businesses avoid paying some taxes by shifting profits away from the
location where the activities creating those profits take place - this is also known as base
erosion and profit shifting (BEPS).
The international corporate tax standards have struggled to keep pace with changes in global
business practices, with an increasing share of trade taking place online. International tax
standards have remained largely unchanged for over a hundred years - and now need to be
updated to prevent gaps from being exploited.
At the G20 meeting of finance ministers in February 2013, Chancellor of the Exchequer
George Osborne welcomed the initial report by the international Organisation for Economic
Co-operation and Development (OECD) on addressing BEPS as a first step for dealing with
profit shifting by multinational corporations.

At the G8 summit in June 2013, G8 leaders called on the OECD to draw up a template for
global corporations to report to tax authorities on where they make their profits and pay taxes
around the world. This will give tax authorities around the world a new tool against tax
avoidance by multinationals.
Alongside these efforts, we are also recruiting more people to speed up HMRCs work to
identify risks relating to large businesses. This will help to make sure that multinationals fully
declare their UK profits and pay the tax due in the UK.

Preventing avoidance and evasion by wealthy individuals


We are expanding HMRCs Affluent Unit, with 100 extra investigators and extra risk and
intelligence staff to identify and deal with avoidance and evasion by the wealthiest
individuals.
We are increasing the number of specialist personal tax inspectors to prevent evasion and
avoidance of inheritance tax, using offshore trusts, bank accounts and other entities. These
specialists will concentrate in particular on the agents and tax intermediaries involved in
these activities.

Increasing our ability to identify offshore tax evasion and avoidance


We are working more closely with other tax administrations to prevent offshore evasion.
At the G8 Summit in June 2013, the UK reached a major new agreement with G8 member
states to move to establish the automatic exchange of information between tax authorities. G8
countries agreed to work with the OECD to develop a model for this.
This builds on the prior commitment made by France, Germany, Italy, Spain and the UK to
pilot the automatic exchange of tax information. This initiative has since been joined by 12
other EU Member States and Mexico and Norway.
The UK Crown Dependencies and Overseas Territories (Guernsey, the Isle of Man, Jersey ,
the Cayman Islands, Anguilla, Bermuda, the British Virgin Islands, Montserrat, Gibraltar and
the Turks and Caicos Islands) have also joined this initiative, agreeing to automatically
exchange information about accounts held in those jurisdictions with the UK and others.
We have also set up a new centre of excellence within HMRC to bring together and enhance
our expertise in dealing with offshore evasion. The team will look at how HMRC can best
use data to identify offshore tax evasion.

Using data and new technology


We are investing in our ability to use data and new and advanced technology to identify fraud
and evasion risks. We have already brought in an extra 1.4 billion of tax revenue by
investing 45 million in these activities.
We are improving HMRCs CONNECT analytical computer system, so that the department
is better able to identify areas of compliance risk. This will allow HMRC to act swiftly in
identifying and investigating fraudulent behaviour.

Dealing with tax avoidance schemes


We are designing legislation that minimises the scope for tax avoidance.
The government has introduced a General Anti-Abuse Rule (GAAR), aimed at deterring and
preventing artificial and abusive tax avoidance schemes.
We will also introduce new measures to deal with tax advisers who sell contrived and
aggressive tax avoidance schemes. The government has announced it will consult on
proposals to introduce significant new information disclosure and penalty powers, to make it
more difficult for the promoters of abusive schemes to continue to market them in the future.
We are using settlement opportunities to encourage users of avoidance schemes to agree their
tax position with us, and investing in additional resource to accelerate litigation for those who
do not settle.
We are making better use of anti-avoidance communications to influence the behaviour of
taxpayers and promoters of avoidance schemes. We are also improving the quality of
information available on avoidance to help taxpayers realise the potential downsides and
risks.

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