Paying tax is not usually our favourite activity, but most of us recognise that taxation is vital for the funding of public services. There will always be debate about the level of taxation and public spending but the general principle of paying a fair share to fund public services is long established. However, it is frustrating and undermines confidence when we see attempts to cheat the system and fair shares not being paid. Amid a busy summer of news, many people may not be aware that a fortnight ago, the Conservative Government announced tougher sanctions for tax evaders. This is something that I very much welcome.
From October, the Government will start to receive data on the offshore finances of UK taxpayers which is a real game-changer in the fight against illegal tax evasion. A new criminal offence is being created for firms who don’t stop their staff from facilitating tax evasion. This measure which was first announced in the March 2015 Budget, is being brought forward so that for the first time, companies will be held criminally liable if they fail to stop their employees facilitating tax evasion.
Loopholes are being closed so that big businesses pay their fair share of tax. Our tax rules will be modernised in order to close loopholes that have allowed large international companies to reduce their tax bills to close to zero. This is in addition to the introduction of a 25% diverted profits tax on multinationals’ profits where they are artificially shifted out of the country. The Government are also going to legislate against property developers shifting profits offshore, so that UK tax is paid on UK property.
In the last Parliament, there were 40 tax changes to close loopholes, which raised an additional £12 billion to fund vital public services. This Parliament will see legislation for another 25 measures, which is forecast to raise another £16 billion by 2021. These tough new sanctions send a clear signal to tax evaders that they either need to pay outstanding taxes or face tougher penalties. These measures will benefit public services and restore confidence.
Councillor Duncan Crow
Leader of Crawley Borough Council Conservative Group
7th September 2016