CIOT: Extra resources for crackdown on tax evasion welcomed
Commenting on today’s announcement of extra resources for tackling tax avoidance, evasion and fraud, John Whiting, Tax Policy Director of the Chartered Institute of Taxation (CIOT), said:
“All right-minded tax advisers will welcome this increased emphasis on tackling tax evasion. Tax evasion is not a victimless crime. Cheating the Revenue robs the Exchequer of the money the Government need to fund public services and makes us all suffer.
“The Chartered Institute of Taxation has long argued that more effort needs to be put into investigating and tackling people who seek to evade tax. Cutbacks at HMRC should not mean lessening of efforts to tackle evasion. Putting resources into pursuing newer forms of evasion such as cyber crime (or e-evasion) as well as the more traditional smuggling and hidden economy is sensible.
“We can also well understand the desire to further tackle avoidance – but that should be put into the context of all the changes made in recent years, including the disclosure regime and effective ‘Targeted Anti-Avoidance Rules’ (TAARs). Ever more complex rules risk becoming administratively burdensome for all concerned and even creating further loopholes. At the same time, a good deal of the supposed avoidance is dependent on obfuscation and concealment and is better classed as evasion.”
Notes to Editors
1. In a speech at Liberal Democrat conference in Liverpool today, Rt Hon Danny Alexander MP, Chief Secretary to the Treasury, announced that the Government will make £900m available over the spending review period to tackle tax avoidance, evasion and fraud. Measures will include:
a fivefold increase in the number of criminal prosecutions against tax evasion
a crackdown on offshore evasion with the creation of a dedicated team of investigators to catch those hiding money offshore
a much tougher stance on evasion and avoidance by those liable for the 50 per cent tax band
further investment in in-house collection capacity to increase HMRC’s internal debt collection rates
more registration checks to stop people claiming tax repayments when they are not due.
Further information on the measures proposed can be found at the CIOT website (http://www.tax.org.uk/media_centre/blog/Media+and+Politics/Chief+Secretary+announces+extra+resources+for+crackdown+on+tax+evasion).
2. The Chartered Institute of Taxation (CIOT) is a charity and the leading professional body in the United Kingdom concerned solely with taxation. The CIOT’s primary purpose is to promote education and study of the administration and practice of taxation. One of the key aims is to achieve a better, more efficient, tax system for all affected by it – taxpayers, advisers and the authorities.
The CIOT’s comments and recommendations on tax issues are made solely in order to achieve its primary purpose: it is politically neutral in its work. The CIOT will seek to draw on its members’ experience in private practice, government, commerce and industry and academia to argue and explain how public policy objectives (to the extent that these are clearly stated or can be discerned) can most effectively be achieved.
The CIOT’s 15,000 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’.
– ENDS –
George Crozier
External Relations Manager
At Liberal Democrat conference until Wednesday so please call me on my mobile:
+44 (0)7740 477374
The Chartered Institute of Taxation
Registered charity number 1037771
www.tax.org.uk
-01.png){kind=spacer}