Category: George Osborne

HMRC empowered to name and shame tax evasion ‘enablers’

Treasury says individuals or corporations who take deliberate action to help others evade paying tax face steep fines. Tax advisers, accountants and lawyers who aid the super-rich with offshore tax evasion will face tough new penalties from New Year’s Day, with HMRC now able to publicly name and shame “enablers”....

HMRC takes aim at tax dodgers hiding foreign income

The taxman plans to crack down on people who hide earnings from offshore investments, with greater powers to impose tougher penalties. People who do not reveal income from foreign accounts and investments to HM Revenue & Customs (HMRC) could be hit with penalties of three times the amount of tax...

Treasury proposal may fine tax evaders up to 200% of amount owed

Tougher stance follows Theresa May’s leadership campaign promise to be more punitive of tax evasion and avoidance The Treasury is proposing new rules to punish offshore tax evaders who fail to come clean about their finances before September 2018, with fines of up to 200% of the amount owed. Published...

Brexit – The UK and International Tax Consequences

The political, economic and constitutional fallout of the UK’s referendum decision to leave the European Union (Brexit) will continue for some time. In addition to considering some of the possible domestic UK tax implications of Brexit, this OnPoint also considers some of the potential tax implications from the perspective of...

David Cameron’s finances touched a nerve – tax openness is the answer

Nearly half of people say the Prime Minister’s handling of his finances was ‘morally repugnant’, according to our opinion poll, and they support public tax returns for all As the fallout from the fallout from the Panama Papers leak begins to settle, the Prime Minister is left contemplating the damage...

UK To Fast-Track New Tax Evasion Offense

The UK Government will bring forward plans to introduce a new criminal offense for companies that fail to prevent their staff from facilitating tax evasion. Prime Minister David Cameron said that the offense will be introduced in legislation this year. Cameron explained: “This Government has done more than any other...

PE Panorama: Is the UK Budget 2016 really PE-friendly?

Private equity (PE) populism looks to be in the news again – though in a context that’s unlikely to win too many votes for the instigators. This time it’s the UK, and Chancellor George Osborne’s latest budget. The UK Budget 2016 (the Budget) includes a significant reduction in the UK...

Income tax cuts will benefit 31 million workers

The amount people can earn before being hit by income tax will rise to £11,500 in April 2017, benefiting millions of workers. The move will cut taxes for 31 million people, according to the Treasury, and will mean 1.3 million low-wage workers are taken out of paying income tax altogether....

UK Slammed Over Tax Haven Inaction as Report Shows Rich Getting Richer

The UK has been slammed over its failure to crackdown on British-controlled tax havens, with a new report claiming that the wealthiest one percent of the UK’s population have captured more than US$1.4 trillion of the country’s national growth since 2000. The report from Oxfam called on UK officials to...

Google And The UK Tax System – Tax Avoidance?

For several years now Google has been facing what appears to be a case of tax avoidance in the UK, at some point in time, the company went as far saying it did not make any money from business in the UK all in a desperate attempt to pay less...

Talking Tax in Shanghai

In Shanghai, Wolfgang Schäuble is urging his fellow G20 countries to put new rules to tackle tax avoidance into law. Back home, business leaders worry that German companies could be left exposed by the new rules if they are introduced unilaterally or go too far. The finance ministers of the...

A global revolution in corporate tax is taking place but it will not be televised

A quiet revolution is taking place across Europe. It isn’t playing out on the streets of capital cities or in the debating chambers of national parliaments. It has been slowly happening with every newspaper headline about how little corporation tax some companies pay relative to their size. It is also...

Google tells Parliament it won’t pay ‘Google Tax’ in U.K.

Google’s top global tax executive told U.K. lawmakers that a new U.K. tax provision dubbed “the Google Tax” will not actually apply to the U.S. technology giant. The law, officially the Diverted Profits Tax, was introduced last year amid concerns that Google parent Alphabet Inc. and other global tech companies...

Commission to propose that country-by-country tax information be made public

Multinational companies operating in Europe will have to publicly disclose their earnings and the tax paid in each European country if new measures being proposed by the European Commission come into force, The Guardian has reported. The Commission will propose new legislation in April that makes profit and tax information...

Special investigation: Why it’s not just planes that vanish in Bermuda

Journalist Steve Topple investigates Bermuda-based big business tax avoidance and its links with UK political parties – and even some charities LAST WEEK saw the news emerge that everyone’s favourite search engine, Google, only had to pay £97m in back-tax (not the “major success” of £130m as was first reported)...

Google overtakes Apple as world’s most valuable listed company

Revenue spike sees tech firm’s parent company, Alphabet, valued at $568bn – surpassing Apple’s valuation of $535bn Google has become the world’s most valuable listed company after announcing that its global revenues rose 13% to $75bn (£52bn) last year, and the group’s tax rate fell to just 17%. The group...

Tax Injustice Is Systemic

COMMUNIST trade union leader Ken Gill famously referred to taxation as “the price we pay for civilisation.” If so last week gave further evidence of just how uncivilised a country Britain has become after decades of neoliberalism. Google’s deal with HMRC has rightly prompted outrage and consternation at the sheer...

Google expected to reveal growth of offshore cash funds to $43bn

Tech company’s 2015 earnings will be announced next week as governments aim to crack down on Google’s controversial tax avoidance arrangements Google is poised to confirm next week that controversial tax structures in Ireland, the Netherlands and Bermuda have boosted its offshore cash mountain to more than $43bn (£30bn), figures...

India, UK to cooperate in infrastructure financing, check tax evasion

LONDON: India and the UK today agreed to strengthen their economic cooperation in infrastructure and financial services as they vowed to address cross-border tax evasion and avoidance. Finance Minister Arun Jaitley, who held talks with his UK counterpart George Osborne as part of the 8th India-UK Economic and Financial Dialogue...

Sharing India-UK tax info to figure in Jaitley’s talks with Osborne

The automatic sharing of tax information between India and Britain scheduled to begin from 2017 is expected to figure in the Economic and Financial Dialogue (EFD) between finance minister Arun Jaitley and chancellor George Osborne in London during January 18-19. Jaitley is scheduled arrive in London on a three-day visit...

Labour and Tories Unite over Tax Avoidance

Information from Reuters has brought to light the fact that five of the biggest banks operating in the UK (and worldwide) paid not a penny in corporation tax in 2014. Efforts to crack down on this kind of corporation tax avoidance have brought together Westminster’s political right and left. Deutsche...

Two more top banks getting away with paying NO corporation tax in the UK: Credit Suisse and Citigroup are latest to admit using previous losses to slash their bills

Two more top banks getting away with paying NO corporation tax in the UK: Credit Suisse and Citigroup are latest to admit using previous losses to slash their bills Seven foreign investment banks in London now pay no corporation tax Fines and lawsuits used to slash their tax bills by...

Doing the maths: how real is Ireland’s economic growth?

Official Irish statistics are being fattened up by massive tax inversions and the re-registering of companies, warns Dan White The ESRI estimates that the Irish economy grew by 6.7pc in 2015 and is forecasting GDP growth of 4.8pc for this year. GNP, which is generally regarded as a better measurement...

Exclusive: More banks pay no UK tax, Labour wants tougher approach

Two more investment banks have reported paying zero tax in Britain in 2014, prompting the opposition Labour party to urge the government to reverse a tax change it made for banks last year. Citigroup and Credit Suisse disclosed in the past fortnight that their main UK subsidiaries paid no corporate...

2015: A Watershed Year in Corporate Tax?

Multinational companies have enjoyed a sustained period of falling corporate tax rates around the world. However, with the conclusion of the OECD’s base erosion and profit shifting project earlier this year marking the start of fundamental changes to the international tax system, and with governments more determined than ever to...

George Osborne’s tax avoidance crackdown misses target by hundreds of millions of pounds

The Office for Budget Responsibility says some areas of scheme are underperforming compared to expectations George Osborne’s plan to crack down on tax avoidance has fallen £600m short of its hearalded benefits, according to an analysis by a Government watchdog. The Office for Budget Responsibility (OBR) said in an analysis...

Bid to stamp out corporate tax avoidance unites Westminster parties

Current system viewed as unfair and too easy to circumvent Abolition of corporation tax is to be considered by a new cross-party group of MPs and peers who will subject ministers and business leaders to public interrogations in a bid to secure fairer and more responsible tax policies. The all-party...

Netflix is latest multi-million-pound global company that does not pay UK corporation tax despite generating £200m of revenue in Britain

Netflix the online movie rental service did not pay any UK corporation tax last year, despite generating an income of £200million in Britain. The world’s biggest internet movie streaming service has five million subscribers in the UK alone and has proved a hit by offering U.S. shows like House of...

Chris Blackhurst: Britain’s island tax havens need action

Amid all the diplomatic comings and goings on Syria and how to tackle Islamic State, an important but little-noticed high-level gathering has been taking place in London. The Overseas Territories were holding the fourth meeting of their Joint Ministerial Council at Lancaster House. Leaders from Anguilla, Bermuda, British Virgin Islands,...

Miscalculate tax on a holiday home or inheritance? You could soon be branded a criminal

Holiday home owners and others who inadvertantly break new tax rules could be ‘criminalised’ Holiday home owners who miscalculate tax owed, and those inheriting offshore money, face having their income wiped out entirely due to new penalties and punishments being introduced in the New Year. HM Revenue & Customs has...

Charlotte Barbour: The drive to decentralise taxes

The House of Lords has recently criticised the speed of further devolution of powers to Scotland, but nevertheless the Scotland Bill is progressing through the UK parliament. Devolution more widely across the UK is a direction of travel in this Chancellor’s Autumn Statement. Among the announcements, George Osborne said that...

Northern Ireland’s 12.5pc corporate tax rate will pose threat to foreign direct investment in the South

The North will have its own 12.5pc corporate tax rate from 2018. This means that it will compete harder against the Republic for FDI projects, writes Dan White The 12.5pc company tax rate will no longer be confined to the southern part of the island. Last week’s ‘Fresh Start’ agreement...

Osborne’s struggle to balance the books: Will the Chancellor target capital gains tax in the Autumn Statement?

The Chancellor could target capital gains tax for extra revenue when he delivers his Autumn Statement next week as gains from investors and landlords hit their highest on record in the past financial year, accountants suggest. George Osborne, who will unveil his spending plans for Britain next Wednesday, is under...

Welsh town to copy Isle of Man model in TV tax haven documentary

The Isle of Man’s role as an offshore finance centre will come under the spotlight on television following a Welsh town’s experiment in how to avoid paying UK tax. Independent traders in Crickhowell, led by the salmon smokery, the local coffee shop, the adventure clothes shop, the optician, the book...