Reward offered for informing on tax-dodgers

The Home Office has floated plans to offer taxpayers a cash windfall for denouncing tax-dodgers as part of a wide-ranging action plan to improve the way the government seizes criminal assets.

The system would be based on what the Home Office describes as a 'strikingly successful' initiative in the US which has brought in $11bn (£5.5bn) since 1986. 

Whistleblowers would win a share of assets confiscated by the courts if they report  against a fraudster involved in benefits scams, such as a cigarette smuggler or a company dodging VAT. Stateside informants receive between 15% and 30% of seized assets in a successful case.

Home Office under-secretary of state Vernon Coaker said: 'It seems to have been successful in the US. We are asking is it applicable in this country, is it something that people would find acceptable and is there a workable model? We think it would be irresponsible for us as a government not to look at what people are doing overseas.'

Further reading:

Revenue enforces gear up for international tax swoop

US Treasury secretary against collecting more tax

US taxman eyes offshore vehicles