Companies braced for tax avoidance clampdown
UK businesses ready for a fresh onslaught on tax avoidance in tomorrow's budget
Gordon Brown is planning to raise a further £4bn over the next year from
clamping down on tax avoidance loopholes.
Chris Sanger, head of tax at Ernst & Young, said that Brown was bound to
clamp down on avoidance in order to maintain his reputation for ‘sound economic
policy’.
‘He (Brown) will push on with his revenue raising plans so as to leave no-one
in any doubt as to his skills both as a chancellor and as a strong politician,’
Sanger told the Financial Times.
‘As a result, the campaign against anti-avoidance will continue apace with
businesses in the firing line,’ Sanger added.
Since 1992, when tax revenue as a portion of GDP was 32.8%, the ratio has
increased to 38% and the clampdown on avoidance is one of the main drivers
behind this increase.