City firms could face 100pc fines for helping with tax avoidance
City firms that help businesses run tax avoidance schemes could face huge financial penalties under fresh Government proposals.
Banks, accountancy firms and lawyers could be forced to hand over underpaid tax if they are found to have broken the law.
Currently, advisers who facilitate tax avoidance by exploiting loopholes and complex schemes face little risk, while their clients can be hit with heavy fines if they are defeated in court by HM Revenue and Customs.
Under new HMRC plans, firms that help clients exploit tax rules, including the use of offshore tax havens, could pay a fine of up to 100pc of the money lost to the taxpayer.
The HMRC consultation, released today, will also make it simpler for the Treasury to enforce penalties when avoidance schemes are defeated.
It comes after Prime Minister Theresa May and her predecessor David Cameron both pledged to clampdown on tax avoidance and evasion following the Panama Papers data leak.
Last year accountancy firm PriceWaterhouseCoopers was accused of taking part in “tax avoidance on an industrial scale” by MPs.
Jane Ellison, the Financial Secretary to the Treasury, said: “People who peddle tax avoidance schemes deny the country of vital tax revenue and this government is determined to make sure they pay.”
“The vast majority of their schemes don’t work and can land their users in court facing large tax bills and other costs”, said Ms Ellison.
