Tax evasion: UK clamps down on bankers
bankers, lawyers, and other advisors in Britain who enable offshore tax evasion will face tough new sanctions under a new law that empower tax authorities to charge civil penalties on facilitators of tax evasion.
The new powers effective January 1 will see individuals or corporates who take deliberate action to help others evade paying tax facing fines of up to 100% of the tax they helped evade or £3,000 ($3,690), whichever is highest. The taxman will also be able to publicly name the enabler.
While tax evasion has always been illegal, this law will mean Britain’s tax authorities can, for the first time, charge civil penalties on the facilitators of the tax evasion who provide planning, advice or other professional services or physically move funds offshore.
Financial secretary to the Treasury, Jane Ellison said: “Tax evasion is a crime and as a government we have led reform of the international tax system to root it out. The raft of measures we have introduced to tackle avoidance and evasion will create a level playing field for the vast majority of people and businesses who play fair and pay what is due”.
This year the Theresa May government will also introduce a new corporate criminal offence of failing to prevent the facilitation of tax evasion. Under the new rule currently being legislated for, companies will be held liable if an individual acting on its behalf as an employee or contractor facilitates tax evasion.
Previously there needed to be proof that the board of directors were aware and involved in facilitating the evasion.
Besides, a new requirement to correct past tax evasion has also been introduced, which will see anyone who has failed to correct past evaded taxes by September 30, 2018, hit with tough new penalties.