TaxCorporate TaxAS2012: Government to scrutinise suppliers’ tax arrangements

AS2012: Government to scrutinise suppliers' tax arrangements

Government suppliers revealed to have unsavoury tax practices could find themselves out in the cold when it comes to dishing out state procurement contracts

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.”

Related Articles

HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

1m Emma Smith, Managing Editor
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

4m Alia Shoaib, Reporter
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

5m Alia Shoaib, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

5m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

5m Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

5m Emma Smith, Managing Editor
OTS report: Corporation tax should follow accounts

Corporate Tax OTS report: Corporation tax should follow accounts

7m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

7m Emma Smith, Managing Editor