21/06/22

UK: MPs push for new law to stop promoters of tax dodging getting away ‘scot free’.

As published on nwemail.co.uk, Tuesday 21 June, 2022.

Anti-corruption campaigners in Parliament are planning to push for a new law that would make it easier to prosecute enablers of “egregious tax avoidance”.

The cross-party group, led by Labour MP Dame Margaret Hodge, is planning to table an amendment to the second Economic Crime Bill that would remove the requirement to prove people promoting tax avoidance schemes had been dishonest.

The law would target tax advisers, lawyers and accountants who, Dame Margaret said, often got away “scot free” even if the schemes they promoted were found to be unlawful.

Dame Margaret, who chairs the all-party group on anti-corruption and responsible tax, said: “In order to bear down on egregious tax avoidance, we must tackle the role of enablers by holding them to account for their advice.”

She added: “In the most serious cases, these enablers should be subject to criminal prosecutions. However, prosecuting these bad actors under existing law is made harder by the need to prove they’re dishonest.

“Without strengthening the ability of law enforcement to tackle these enablers by making prosecutions practical and possible, there is little credible deterrent against the minority of wrongdoers that profit by trading in the very worst tax advice.”

She added: “In the most serious cases, these enablers should be subject to criminal prosecutions. However, prosecuting these bad actors under existing law is made harder by the need to prove they’re dishonest.

“Without strengthening the ability of law enforcement to tackle these enablers by making prosecutions practical and possible, there is little credible deterrent against the minority of wrongdoers that profit by trading in the very worst tax advice.”

Mr Rouse’s advice was that scenarios that might result in an unjust prosecution were “inherently unlikely” and the amendment would “simply … enable prosecutions of dishonest advisers that would otherwise be very difficult for evidential reasons”.

Dame Margaret added: “This simple new law will allow us to clamp down on the promoters that enable criminal tax dodging, and that’s why this proposal should be in the Government’s upcoming Economic Crime Bill.

“Our APPG will be campaigning cross-party to ensure that this measure, and many others, are included in this vital piece of legislation.”

Other leading members of the all-party group include former Conservative cabinet minister Andrew Mitchell along with Labour’s Rupa Huq and Conservative Nigel Mills.