Danny Alexander considering new laws to tackle tax schemes
In response to the recent controversy over celebrities such as the comedian Jimmy Carr using tax schemes to greatly reduce their income tax bill, ministers are considering introducing new laws to ensure that they pay their “proper share” of tax.
Chief Secretary to the Treasury Danny Alexander said in the wake of the revelations last week, where several celebrities were linked with controversial tax saving schemes that the government would be looking at introducing new laws “to make sure everyone pays their proper share”.
There has though, been reports of accountants secretly boasting that no matter what efforts are made by the government to tackle the tax schemes they would be able to find new loopholes for their clients.
The latest celebrity to hit the news in relation to his tax affairs is Sir Chris Hoy who had to defend his tax arrangement following claims that he had used his own company to pay him a loan.
One of the possible remedies which the government may consider is to introduce a legal floor for tax contributions for all British residents.
Mr Alexander said: “We are going to leave absolutely no stone unturned to make every measure that we can to close down avoidance schemes and then put in place new rules and new laws to make sure that everyone pays their proper share of tax.”
He also announced that HMRC would be given powers to ensure that schemes “can be shut down straight away”.
There have however been concerns raised that HMRC does not have sufficient resources to tackle tax avoidance. Reports show that there is currently a backlog of 20,000 tax tribunals.