The government has created a taskforce to investigate allegations of offshore tax avoidance, which emerged from the Panama Papers leak.
The prime minister yesterday (10 April) announced £10m has been allocated to support the taskforce, which will investigate leads on tax-dodging from the Panama Papers.
The new unit, which will be lead by HM Revenue & Customs and the National Crime Agency, will also be made up of specialists and analysts from the Serious Fraud Office and the Financial Conduct Authority.
David Cameron also published his tax returns yesterday (10 April) in a bid to calm the public uproar following news he benefitted from his late father’s offshore investment trust.
Last week leaked documents called the ‘Panama Papers’ were released, which uncovered 11.5m files from Panama-based global law firm Mossack Fonseca disclosing secret tax dealings.
The newly established taskforce will report its progress to the chancellor and Home Secretary later this year.
It is already investigating 700 current leads linked to the Panama Papers.
Over recent years the UK government has clamped down on aggressive tax avoidance and evasion, and HMRC has tracked down £2bn from offshore tax dodgers since 2010.
But Mr Cameron said there is “clearly further to go”, adding the new taskforce will bring together the “best of British expertise” to deal with any “wrongdoing” relating to the Panama Papers.
The chancellor is working with other countries to accelerate progress towards sharing beneficial ownership information, meaning enforcement agencies can share information on who really owns companies.
From June 2016, the UK will publish its own freely-accessible register of company beneficial ownership.
“Our message is clear: there are no safe havens.” David Gauke Financial Secretary to the Treasury David Gauke said the Panama papers show tax evasion is part of a “wider set of international criminality activity”, together with money laundering, illicit finance and evading sanctions.
He said the new taskforce will “further tighten the screw” on those who think they can get away with dodging tax.
“It will also further enhance our ability to tackle financial crimes across the board, leaving no stone unturned.
“Our message is clear: there are no safe havens.”
Philip Milton, chartered financial planner at Devon-based Philip J Milton & Company, welcomed the new taskforce.
“There is nothing wrong with the super-rich preserving anonymity with their international wealth and that should be allowed to continue, but when blatant illegality is involved, it must be stopped.
“Tax havens would be keen to participate to preserve their special status and demonstrate to the world they are not places for the proceeds of crime to be hidden.”
Mr Milton suggested the enquiries should extend to property ownership by offshore trusts in the UK.
katherine.denham@ft.com
