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Taxation: Evasion

Answer

Evasion is the deliberate omission or misrepresentation to gain a tax advantage, and HM Revenue and Customs (HMRC) targets evaders through enhanced data matching capabilities, as well as by amending legislation to remove opportunities for evasion. The recent offshore disclosure arrangements under which 45,000 people made disclosures yielded around £400 million. This work is underpinned by the Government's introduction of the new penalty regime to deter and penalise tax evasion. The Government are also committed to tackling offshore tax evasion. They are working with the OECD and the EU to promote transparency and exchange of information, which are key to tackling the problem. The Government are in the process of negotiating tax information exchange agreements with British Overseas Territories and Crown Dependences and have recently concluded one with Bermuda. Following the 2007 offshore disclosure arrangements, the Government are also in discussion with the banking industry with regard to obtaining further offshore account information on UK residents. The Government actions to target offshore tax evasion need to be clearly distinguished from the proposed changes to the rules on residence and domicile. The remittance basis of taxation does not represent a form of tax evasion. Rather, it offers an alternative basis of taxation, which helps to make the UK an attractive destination for international talent and investment. The Government's reforms will retain these special rules, while ensuring that they operate more fairly.

Secondary information

Type

Written question

Reference

2067; 699 c215-6WA

Session

2007-08

Subjects

Domicil Taxation Tax evasion Tax havens

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk