Tax Avoidance and Tax Evasion
The question
To ask the Chancellor of the Exchequer, whether she has assessed the potential merits of making (a) directors and (b) owners of (i) dissolved and (ii) all other companies personally liable for the underpayment of taxes arising from the adaptation of tax (A) avoidance and (B) evasion schemes that those companies have (1) promoted and (2) made earnings from.
Answered by Dan Tomlinson
The Government is committed to closing the tax gap and cracking down on avoidance and evasion.
The Government is determined to do more to close in on promoters of marketed tax avoidance and recently consulted on a package of measures to strengthen HMRC’s powers to tackle them.
HMRC also carries out civil and criminal investigations into suspected tax evasion, including where there is suspicion of third parties being involved in fraud or evasions. All investigations are assessed to determine which action would be most appropriate.
It is a fundamental principle of the tax system that taxpayers are responsible for their own tax affairs. However, HMRC does levy penalties on promoters of tax avoidance and uses the Joint and Several Liability legislation to seek to recover penalty liabilities from appropriate individuals: including directors; shadow directors; or participators when the company becomes insolvent.
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