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
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

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