Lib Dems push for new corporate tax evasion crackdown

Organisations which fail to prevent tax evasion would be subject to big fines under a proposed crackdown, the Chief Secretary to the Treasury has said.

Danny Alexander, Chief Secretary to the Treasury, proposed creating a new offence of "corporate failure to avoid preventing an economic crime".

He said the idea would also see organisations who encourage tax evasion or make it easier for it to be carried out face the same level of fine as the evaders.

The Liberal Democrat front-bencher said he would make efforts before May's general election to see if progress can be made on the idea.

If not then it will become a key part of the Lib Dem manifesto, he added.

Speaking on the Andrew Marr Show on BBC One, Mr Alexander said the idea would create a much stronger deterrent to companies helping tax dodgers.

He said: "Organisations, be they accountants, banks or whatever, who help people evade tax will be liable for this new offence and crucially liable for financial penalties.

"So, for example, if their customers have to pay back hundreds of millions of pounds in tax then those organisations should have to match that with hundreds of millions of pounds of their own money and I think that's a very tough disincentive to them to get involved in this in the first place.

"This is taboo. This is something that absolutely mustn't happen in our society and we still have a problem with some people thinking they can get away without paying their fair share of tax."

Additional reporting by the Press Association