Tax Avoiders To Be 'Named And Shamed' After Jimmy Carr Revelations

Top Tax Avoiders To Be 'Named And Shamed'

Wealthy people who who use aggressive tax avoidance schemes could be named and shamed, under plans due to be unveiled by the Treasury on Monday.

Exchequer secretary David Gauke will tell the Policy Exchange think-tank that schemes of the sort that allowed comedian Jimmy Carr to pay only 1% tax on his income "undermine the actions of the vast majority of taxpayers".

He will say: "We are building on the work we have already done to make life difficult for those who artificially and aggressively reduce their tax bill.

"These schemes damage our ability to fund public services and provide support to those who need it."

While tax avoidance is not illegal, David Cameron described Carr's actions as "morally wrong"

And in his March Budget George Osborne said tax evasion - which is illegal - and aggressive tax avoidance were both "morally repugnant".

Under the plans proposed today, the government would force companies that help people avoid tax disclose the names of wealthy clients who take advantage of tax loopholes.

Gauke will say: "They harm businesses by distorting competition. They damage public confidence.

"And they undermine the actions of the vast majority of taxpayers, who pay more in tax as a consequence of others enjoying a free ride."

Officials often hit a dead-end when investigating schemes that are based off-shore but under the proposals UK promoters will be made to hand over customer databases.

That information will be used to formally warn clients directly about the deals they have signed up to and to work out how much tax they owe if the scheme fails.

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