UK Tax avoiders may be 'named and shamed'

Photo of Jimmy Carr 

The Treasury will announce a crackdown on tax avoidance schemes on Monday in the wake of the row over the tax affairs of the comedian Jimmy Carr. Promoters of aggressive tax avoidance schemes may be forced to disclose client lists to inspectors, according to David Gauke, the minister with responsibility for tax matters.

It follows revelations about the financial loopholes used by the rich and famous to legally sidestep large tax bills. In one scheme, Carr was paying 1% tax on his income. The plan, which is going out to consultation, has been greeted with scepticism by Labour. One shadow minister said the Tories were so closely associated with tax avoiders they would not have the political will necessary to change the tax system.

Gauke will tell the Policy Exchange thinktank that scheme operators will be "named and shamed" for sharp practice. Officials often hit a dead end when investigating schemes that are based offshore but, under the proposals, UK promoters will be made to hand over customer databases. That information will be used to formally warn clients about the deals they have signed up to and to work out how much the amount of tax they would owe if the scheme failed. Read more >>