Govt to stop contracts to tax avoiders

The government is to stop businesses involved in tax avoidance schemes from being awarded public sector contracts.

New rules will be introduced by the Treasury that means any firm or individual found to be involved in a scheme will not be able to become a supplier for government services.

Furthermore, the rules - which will come into force on April 1st - will mean potential suppliers have to notify contracting departments of their recent tax compliance history.

Danny Alexander, Chief Secretary to the Treasury, said: "The government is clear that aggressive tax avoidance is totally unacceptable. That's why we are closing loopholes, bringing in a new General Anti-Abuse rule, and investing hundreds of millions of pounds in additional funding to help HMRC clamp down.

"These new rules are another significant tool as they will enable government departments to say no to firms bidding for government contracts where they have been involved in failed tax avoidance."

Meanwhile, a new HM Revenue and Customs taskforce will be targeting Northern Ireland's tax evaders to recoup lost revenues in the coming years.

Posted by Thomas Fletcher

Last updated: 14th February 2013