Tax avoidance scheme closed by new govt legislation
21st December 2012 | NewsThe government has announced the closure of a tax avoidance scheme that had been marketed as a way of artificially reducing Corporation Tax bills.
Indeed, draft legislation has been introduced to stop the scheme, which exploited rules that allow some expenditure to be deducted from profits.
Now, HM Revenue and Customs (HMRC) believes that it will recoup tens of millions of pounds through this move.
Exchequer Secretary David Gauke said that the government has "made it very clear" that it will not put up with tax avoidance.
"Within days of HMRC being notified of the existence of this scheme we took decisive steps to shut it down once and for all," he explained.
"The vast majority of people and businesses in the UK pay what they owe but a minority try to dodge their taxes by getting involved in contrived and artificial avoidance schemes. We have made significant investment in HMRC to pursue tax-dodgers and collect an additional £9 billion by 2014."
It comes after Chancellor George Osborne announced earlier this month that the government would be increasing the number of tax inspectors HMRC has.
Posted by Thomas Fletcher