Richard
Burgon MP, Labour’s Shadow Treasury Minister, responding to the Government’s
re-announcement of tax evasion measures from 2015 in response to the
“Panama Papers” revelations, said:
“After a week in which the Prime Minister tried to spin his way out of
answering a simple question, he has started a new week just how he ended the
last one.
"If the Conservatives really think they can get away with the
re-announcement of a policy from 2015 then they really have learnt nothing at
all.
"What we need is for David Cameron to set the record straight and answer
the questions he has been avoiding and which he still has hanging over his
head. At the same time we need policy not spin from the Government on how to
tackle tax avoidance.
"Labour published our Tax Enforcement Programme yesterday that sets out
some serious proposals to deal this issue. It’s time David Cameron got to grips
with this scandal that is engulfing his Party.”
Notes to editors
· David Cameron has said that he will today set out plans for criminal penalties for companies that facilitate tax evasion.
“That
is why we will legislate this year to hold companies who fail to stop their
employees facilitating tax evasion criminally liable.”
David Cameron, 11 April, 2016 - http://www.bbc.co.uk/news/uk-politics-36010902
· But the Government has repeatedly announced its intention to take action in this area.
· In March 2015 the Government announced measures “including a new criminal offence”.
o The introduction of a new liability offence for those who have not paid the tax due on offshore income, following consultation.
o That companies that facilitate tax evasion will face penalties, including a new criminal offence, following consultation.
o That evaders and enables of evasion would be publically named.
o That tax authorities will no longer have to prove “intent to evade tax” to prosecute offenders, following consultation.
o That tax authorities will have more penalties available, following consultation.
o That the Government would be asking the regulatory bodies who police professional standards to take on a greater lead and responsibility in setting and enforcing clear professional standards around the facilitation and promotion of avoidance.
o That HMRC would
get more resources for paying rewards for significant information on offshore
tax evasion.
HM Treasury, HM Revenue & Customs ‘Tackling
tax evasion and avoidance’, March 2015, pages 15-16
o 2015’s announcement was itself a rehash of policies announced the year before in 2014, when George Osborne claimed the Government would act on people who hide their money overseas to avoid paying tax face bigger fines.
“Now, Mr Osborne says the government will consult on a new criminal standard, harsher fines and increased jail sentences.”
BBC, April 2014, http://www.bbc.co.uk/news/uk-politics-26998208
“And the message is very simple - if you’re hiding your money offshore, we are coming to get you and the criminal law is going to come and find you.“
George Osborne, BBC, April 2014, http://www.bbc.co.uk/news/uk-politics-26998208
· Despite the briefing, the Government has not delivered on these promises.
· For all the tough talk, this Government is failing to tackle tax avoidance and evasion:
o The latest figures from HMRC put the tax gap – the difference between the tax owed and that collected – at £34 billion in 2015. (HMRC, Measuring tax gaps 2015 edition, page 4 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/470540/HMRC-measuring-tax-gaps-2015-1.pdf)
o George Osborne’s claimed crackdown on tax avoidance via the UK’s crown dependencies – announced in Budget 2013 – is set to raise just a quarter (26 per cent) of what was initially forecast. (Office for Budget Responsibility, Budget 2016 policy costings, p.223, http://budgetresponsibility.org.uk/docs/dlm_uploads/Annex-A-1.pdf)