I welcome the fact that HMRC is already carrying out an intensive investigation of offshore companies, including in Panama, and has asked the International Consortium of Investigative Journalists to fully share the leaked data. They will act on it swiftly and appropriately. In addition to this I welcome the Prime Minister's announcement that a new taskforce will be established to deal with the so-called Panama Papers.
The former Prime Minister committed to providing resources to ensure that the files are properly investigated, including initial new funding of up to £10 million to support the taskforce's work. I agree that there is more that can be done to tackle tax avoidance, evasion and other exploitations of the tax system.
Following the Anti-corruption Summit in London, the Government has made clear it supports a global commitment to public country-by-country reporting on tax information for large multinational companies. In addition to this, the UK will publish its own register of company beneficial ownership from June 2016, making it clear who the real owners of companies are, the first major country to have such a list in place; the information it contains will be free for anyone to access.
Tax Avoidance - personal (updated September 2016)
The Government remains committed to a competitive tax system with lower rates and high allowances delivering lower taxes for businesses and individuals. But the tax system also needs to be fair. The Government will therefore continue to address imbalances in the system where some individuals and businesses benefit disproportionately from certain rules - and will also continue to tackle avoidance, evasion, non-compliance and tax planning.
I am pleased that the Government has introduced a new criminal offence that removes the need to prove intent for the most serious cases of failing to declare offshore income and gains. In addition to this, the Government will increase civil penalties for deliberate offshore tax evasion. New penalties were recently announced to enhance the General Anti-Abuse Rule, with action taken on disguised remuneration schemes and stamp duty avoidance.
Alongside the measures above targeting individuals who avoid tax, the Government is cracking down on all forms of tax evasion and avoidance, and aggressive tax planning and non-compliance. There should be a level playing field for the majority who pay their tax, and everyone should make their contribution. I am pleased that during the last Parliament, HMRC secured £100 billion in additional tax revenue.
I would like to assure you that the Government is committed to tackling tax avoidance and evasion at all levels to ensure everyone pays the right tax at the right time. Avoidance (and evasion) damages the effectiveness of the tax system and imposes additional costs on all taxpayers.