PwC comments on Government's Tackling Tax Evasion and Avoidance paper

Simon Wilks, tax partner at PwC, said:

"It's good to see the Government taking a clear stand on tax evasion which is illegal. We welcome measures to achieve this, as responsible financial advisers do not help their clients engage in tax evasion or look the other way if they become aware of it.

Corporate offence for failing to prevent tax evasion

"The big news is the introduction of a new offence for failure to prevent evasion. This will be  a sea change for companies who come into contact with people intent on cheating. Companies will not only have to ensure they are not helping people to evade tax but also stop evasion happening. The fact Government is consulting on this measures recognises the challenges - how do companies stop people intent on concealing assets and cheating tax? It's unclear whether bosses could be personally liable for an employee's, client's or customer's misdeeds.

Removing need for intent to prosecute offshore evaders

"Introducing a lower burden of proof to prosecute offshore evasion risks bringing criminal charges to people whose biggest crime has been not to understand their obligations. In an increasing international world there are lots of reasons why someone might have set up an offshore account, for example while working overseas. We'd like to understand how the new rules will ensure the penalties are properly targeted.

Increasing financial penalties for facilitators of off shore evasion

"We strongly support penalising advisers who choose to break the law or turn the other way when they see evasion. Extensive safeguards will be needed as the measures announced today could also affect those who had no intention of breaking the law, given legislation is not always clear. . "

Other announcements

Separately the Government has asked the regulatory bodies who police professional standards to maximise their role in setting and enforcing clear professional standards around the facilitation and promotion of avoidance.

Mary Monfries, head of tax policy at PwC, added: "There’s a critical need to build trust and understanding in the tax system, and the role that tax and legal professionals play and we intend to participate fully in discussions about how this can best be achieved. We are already working with the professional institutes to update the existing professional code of conduct so that it is more easily understood by those outside the profession. We look forward to taking this to the next stage as a profession "