North Swindon MP Justin Tomlinson has welcomed the Government’s latest efforts to ensure that all businesses pay the tax they are supposed to.
A Government crackdown on tax evasion and avoidance is expected to bring in £2.1bn.
The Finance Act 2018 - which includes measures to tackle VAT fraud, loopholes on offshore tax avoidance, and rogue illegal waste site operators - will help to raise an additional £1.2 billion from tackling tax avoidance, evasion and non-compliance.
As a result of this new legislation:
- Online marketplaces will become more responsible for paying the unpaid VAT of their sellers
- People will not be able to avoid paying UK tax on the funds they withdraw from offshore trusts, as the Government closes loopholes in existing anti-avoidance rules
- Companies will not be able to claim relief for losses on the disposal of shares which do not reflect losses incurred by the wider group
- Companies will not be able to claim unfair tax relief on their intellectual property
- Highly paid people cannot use complicated structures to avoid reporting how much they really earn
- Rogue operators of illegal landfill sites will be forced to pay tax, preventing them from undercutting honest waste management businesses
These measures build on the extensive Government work to tackle tax avoidance, evasion and other forms of non-compliance.
Since 2010, the Government has introduced over 100 such measures which have reduced the tax deficit, the difference between the amount of tax owed and actually received by the Treasury, to a record low of 6% - one of the lowest in the world.
Justin Tomlinson MP said: “The Government has committed to ensuring that everyone pays their fair share of tax, and so far it has been able to secure & protect over £175 billion in tax that would otherwise have gone unpaid. This money can now be used to invest in public services, such as schools and hospitals. These latest proposals will build on this work and ensure that even more tax is collected.”
