Companies that fail to prevent tax evasion will be charged under new rules that aim to earn the Treasury an extra £5 billion a year.
“We inherited from the previous government a tax system that had more holes than a Swiss cheese and was more complex than a Rubik’s cube. The opportunities for those who wish to get away without paying were many and varied,” said Liberal Democrat chief secretary to the Treasury, Danny Alexander.
“Strict liability will bring an end to the defence of ‘I knew nothing, it was my accountant, m’lord”
He added: “We will increase financial penalties for offshore evaders, including, for the first time, linking the penalty to underlying assets. A billionaire evading £5m of tax will not just be liable for that £5m.”
A new document signed by Alexander and (Conservative) Chancellor George Osborne claims that under the new regulations, “it will no longer be possible to evade large sums of tax and plead ignorance in an attempt to avoid criminal prosecution.”
Financial firms and corporates caught facilitating tax evasion will be liable for fines equal or greater to the amount owed in tax, it says.
Names of tax evaders will also be published, increasing public scrutiny.
Despite the data protection regulation being implemented in 2018, 69% of IT decision makers don’t have the backing of their board to achieve GDPR compliance, according to Calligo.
The majority of the region’s 28 member states report that the situation has worsened over the past year, reports business management consultant Verisk Maplecroft.
Regulators in the UK, the US and Hong Kong instituted proceedings against more than 1,700 individuals last year, or four times the number of cases brought against companies.
The US Commodity Futures Trading Commission approved LedgerX as the first regulated clearing house for derivatives contracts settling in digital currencies.