Prime Minister Theresa May has promised to "come after" financial advisers who help clients avoid tax, in a speech that sent a clear message to "tax dodgers".
Speaking on the final day of the Conservative Party Conference in Birmingham, Ms May said, while the Conservatives believed in a "low-tax economy", they also recognised taxation was the inevitable price "for living in a civilised society".
"Nobody, no individual tycoon and no single business, however rich, has succeeded on their own," the PM said.
"Their goods are transported by road, their workers are educated in schools, their customers are part of sophisticated networks taking in the private sector, the public sector and charities."
She went on: "If you’re a tax-dodger, we’re coming after you. If you’re an accountant, a financial adviser or a middleman who helps people to avoid what they owe to society, we’re coming after you too.
She said an economy that worked "for everyone" was one "where everyone plays by the same rules", adding: "So whoever you are you – however rich or powerful – you have a duty to pay your tax. And we’re going to make sure you do."
Ms May's tough rhetoric echoed that of former-chancellor George Osborne, who said in a tweet in 2014: "Tax evasion is not just illegal it's immoral. People evading tax should be treated same as common thieves."
As chancellor, Mr Osborne introduced several anti-tax avoidance laws, from multi-nationals to individuals holding offshore properties.
Alan Chan, a chartered financial planner with IFS Wealth & Pensions, said there was a distinction between tax evasion, which is illegal, and tax avoidance, which he said was legal but generally considered immoral by the public.
He said he believed Ms May was referring to the latter.
However, he said the kind of tax avoidance he believed the PM was referring to - such as hiding significant assets in complex trust structures - was not something many IFAs were involved in.
"'Financial adviser' is a very broad term. This is something that affect bigger corporate firms. It's not really within the average IFA's remit," he told FTAdviser.
james.fernyhough@ft.com
