George Osborne Takes On The Tax Avoiders
George Osborne has announced extra investment to help clamp down on multinational companies who avoid paying tax in Britain.
The move comes in the wake of revelations that a number of firms, including Starbucks, Google and Amazon, pay little or no corporation tax.
"I think you can do two things. One is you can enforce the taxes we have got and I am going to be announcing tomorrow extra investment in the part of the Inland Revenue that tackles tax avoidance by multinational companies," the Chancellor told BBC1's Andrew Marr Show.
"Second, you make sure internationally we have the right rules and it is actually Britain who has been working with Germany and France to get those rules on the international table."
However, he warned that Britain must be cautious and make sure big companies did not avoid Britain because of high taxes.
Starbucks has announced it will take action over the tax avoidance issue and said it was reviewing its "tax approach in the UK".
The company, which has been boycotted by some customers following the disclosures about its tax affairs, said it was in talks with the HMRC and the Treasury.
Mr Osborne said he would officially announce the funding for the tax avoidance clamp-down on Monday.
It comes ahead of his Autumn Statement on December 5, in which he is expected to target the pension pots of the rich.
The Chancellor will cut the amount of annual tax relief high earners receive on pension contributions from £50,000 a year to as little as £30,000, according to The Sunday Times.
If he implements the full cut to £30,000, it could raise as much as £1.8bn for the Government.
The Confederation of Business Industry (CBI) has warned it could hit "swathes of middle-income earners", however, it is mainly expected to impact on those with an annual income of around £200,000.
Mr Osborne has also admitted that it is taking Britain longer to recover from the financial crisis than hoped.
He said: "It is clearly taking longer to deal with Britain's debts, it's clearly taking longer to recover from the financial crisis than one would have hoped but we have made real progress."
Labour's former chancellor Alistair Darling told Sky News' Murnaghan show that Mr Osborne had a "bankruptcy of ideas" over how to generate growth.
He said: "It strikes at his very credibility and the credibility of this government's economic judgement."
Any form of mansion tax - or splitting council tax bands - is likely to be ruled out in the coming statement.
There is also speculation a planned 3p per litre rise in fuel duty planned for January may be delayed.
Mr Osborne is also expected to freeze unemployment, income support and housing benefits.
what do you think?
Osboune fiddled while the uk burned
Windows Live User
Has he really grew a pair then?
starbucks in talks with tax people , what about the working class who pay all their taxes and cannot afford financial wizkids to get through the loop holes this government provides.
If he is looking for the wealthy to tax all he needs to do is look at the green benches, both opposite and behind him. There are plenty sitting there and still they claim to need generous expenses to help them get by
Think it is 'do as I say not as I do'
Shows how the Government has ran out of ideas. We all know full well they wouldn't hit the rich unless truly desperate.
Exactly Ben, they're hardly likely to hit themselves, are they ? They're all wealthy people in their own right.
They were getting away with it under the last government too,I can understand the cons looking out for the rich ,but not labour,politicians they all look after the rich
Yes but at least Labour did a bit for pensioners aswell, there would be no winter fuel payments or bus passes if the tories had their way.
" The rich " " the Wealthiest " and most mysterious of all " the middle class " I wonder who he means by them ? ------- maybe not the ones that you or I think.
Dear Mr Osbourne whilst it may be difficult for you to understand but if you lower the tax levels you might find the net revenue increases then make this the place to do business, you might see unemployment fall. Yours sincerely Blue side ................. p.s. and stop giving our money away in aid. p.p.s. I typed this slowly so you can read it
Yes blue, sometimes less is more.
I hear that the football clubs are one of the biggest tax dodgers in the country paying a pittance to the money they earn I don't care who goes after the tax cheats or from what background party or anything just make these people pay the same as the rest of us
More hot air from a professional liar, does anyone seriously believe that he will crack down on his wealthy friends? The Con/Lab/Lib party is the party of the wealthy, why anyone that works for a living still votes for these creatures is beyond me.
Yes John, they're all in it together, aren't they, but not in the same way as we are !
A lot of things are beyond you john. Such as...there is no viable alternative.
T.B the party fan boy zealot, his pin up boy Gideon can do no wrong. Why is Osborne borrowing more than the last bunch of gobsmiths T.B? It appears that he is even more clueless than they were.
working man when he retires get the state pension +savings,,yet if you are high up ih say your local council you retire early and get a pension of 40.000 a year now thats a joke,,yet this is the norm for working for the local councils and nothing seems to be done about this
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most people in G.B work for around 20.000 a year and they pay tax on this higher up the table ..they all earn more and pay less tax and the more they have the more they want
Osborne owes £400,000 from the sale of a house which we paid his mortgage. So if he still refuses to pay it then he must be taken to court and lose his seat.
Roger W Patrick
Mr Osbourne could well make a start with his own family tax dodging finances. His family fortune is located in an offshore tax haven called Belize, I understand. But then he is an "honorable" chap, just the right sort of background, with the right sort of politics, and the right sort of wealth. Just the man we need to run the country!!!
Windows Live User
Is this TRUE? Labour supporters can surely CONFIRM this
God, please send a friendly meteorite crashing down on the Houses Of Parliament, preferably when they are debating their next pay increase, thus ensuring a packed house, amen.
I believe the best way is to name and shame the companies and for people to boycott the tax avoiders if possible. This could also be applied to individuals who make a living from the public. If they decide to leave the UK I am sure someone will fill the hole left.
Windows Live User
without a doubt.
we should all avoid these foreign companies and instead give our custom to uk companies.
That is easier said than done a lot of so called British firms are actually foreign owned
OK Kneecap and watch the unemployment figures rise
Windows Live User
How can he come out with this one - "he warned that Britain must be cautious and make sure big companies did not avoid Britain because of high taxes"! Some have been on the gravyboat by not paying in the past and then embarrassing themselves with silly statements to explain why not! All we want is the shirkers to pay their dues. Plenty of other companies paid their taxes without a problem Raise a fortune wipe out the deficit. I am disappointed Osbourne and Cameron never spotted this happening. On the other hand why should the companies that DID pay bother to pay continue? If those that avoided continued to avoid paying?
OK ! so we change out taxing system and companies registered here pay less and the ones which are registered overseas get told to " ----- off " Who needs foriegn registered services anyway ?
All talk and no action - should start with all Theo's who fiddle their expenses and pay no tax and then the foreigners who dodge their taxes instead of hitting the little guy (us) I. The pocket at the time whilst him and his kind sit pretty
If Starbucks don't pay tax here, then don't allow them to operate here, and sequester their assets for back-taxes at the same time as you kick them out! I'm sure there would be many ex-Starbucks employees who would be more than willing to operate the outlet they worked in as an independent purveyor of coffee. Politicians really do need to grow some gonads ... and stop letting their rich ex-schoolmates (such as the wastes of DNA in the top echelons of the banks) bring this country to the verge of bankruptcy without any accountability whatsoever!!!