GOVERNMENT SUPPLIERS revealed to have unsavoury tax practices could find themselves out in the cold when it comes to dishing out state procurement contracts under tentative plans revealed in the Autumn Statement.
As part of measures to clamp down on tax avoidance and evasion, the Cabinet Office and HMRC are to consult on the use of the procurement process to deter tax avoidance, with a view to the new arrangements coming into effect from 1 April 2013.
Chris Morgan, head of tax policy at KPMG, described the limited explanation in the Autumn Statement as “cryptic”, and suggested there was little time given over for consultation.
“It seems they want to have some kind of certification process to ensure that companies dealing with the government follow the rules as the government interprets them,” Morgan says. “It is also part of the drive to have companies be more transparent about their tax arrangements.”
Research also finds that 84% of businesses believe that the government has not provided enough information about digital tax plans
A total of £16bn was lost through tax fraud last year, according to estimates released by Pinsent Masons
Additional tax a result of compliance investigations by HMRC, but overall revenue falls
Firm expands East Anglian team with appointments to the audit practice and private client tax team