Osborne confirmed the government would be giving HM Revenue & Customs a further £77m to help tackle tax avoidance on top of the £900m it is already investing in the government department. It said through this investment it expects to raise £22bn per year “by the end of this Parliament”.
In order to achieve this, Osborne said HMRC will accelerate the resolution of tax avoidance schemes, increase specialist resource to tackle offshore tax evasion and avoidance of IHT and expand HMRC’s Affluent Unit to deal more effectively with taxpayers with a net worth of more than £1m.
The government also confirmed that guidance and draft legislation of the UK’s first ever General Anti-Abuse Rule (GAAR) would be published later this month. It added it will plan, with immediate effect, to close four loopholes associated with tax avoidance schemes to protect “hundreds of millions of pounds over the next five years”.
Osborne said: “The vast majority of people, rich or otherwise, pay their taxes and make their contribution. But there are still too many who illegally evade their taxes, or use aggressive tax avoidance in order not to pay their fair share. This Government has taken more action against these people than any before it. Prosecutions for tax evasion are up 80%.
“We are increasing by around 2500 the number of tax inspectors going after evaders and avoiders. Next year, we will introduce the first ever General Anti-Abuse Rule. And next year, for the first time in our history, money will be flowing from bank accounts in Switzerland to Britain instead of the other way round. Because of the Treaty we’ve signed, we expect to receive £5bn over the next 6 years from the undisclosed Swiss bank accounts of UK residents.”
Look out for further analysis of the Autumn Statement on International Adviser over the next few days.
