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A group of cross-party MPs have called on the UK government to crack down on the accountants and financial advisors that facilitate tax avoidance schemes, according to City A.M.
In a new report, the all-party parliamentary group (APPG) on Anti-Corruption and Responsible Tax reportedly called for the UK’s tax system to be overhauled, in a bid to boost growth, increase tax revenues, and restore trust in the system.
The group warned that Britain must focus on tax reform and enforcement before ramping up levies, and is therefore urging the Government to make the tax system fairer.
City A.M revealed that Conservative MP Kevin Hollinrake called for a greater focus on enforcement as Treasury Select Committee figures show that every £1 spent on enforcement collects £26 in extra revenue.
The MP said the UK should “spend more on prosecutions, particularly of advisors”, that “enablers” of tax avoidance schemes should be subject to greater scrutiny, and that advisors play a “major part” in facilitating tax avoidance.
He added that few advisors are ever prosecuted or sanctioned for tax fraud, due to a reluctance on the part of HM Revenues and Customs (HMRC) and the Treasury to pursue accountants and other professionals through the courts.
Additionally, Labour MP Margaret Hodge said the UK’s tax system “acts in favour of taxpayers who can afford to pay advisers that can help them avoid paying a fair share.”
She suggested that any person or company that attempts to “dodge” paying should be met with “the full force of the law”.
Meanwhile, Hollinrake warned that multinationals that avoid paying UK taxes undermine trust in the system, which could begin to stifle Britain’s growth.
The MP said that if small businesspeople “lose faith in the system through a belief that the game is rigged in favour of the big guys, then they won’t even bother in the first place.”
