Tax dodgers should be “named and shamed” to discourage the rich and famous from exploiting legal loopholes to avoid paying billions to the Treasury, a spending watchdog recommended.
Aggressive avoidance scheme promoters are “running rings” around HM Revenue and Customs (HMRC), the Public Accounts Committee (PAC) said.
It warned the taxman is losing the “game of cat and mouse” to clients and promoters as they deliberately take advantage of the time it takes HMRC to shut down a particular avoidance method to make their money.
HMRC must start publicly listing promoters and those who use their schemes, the committee said.
Margaret Hodge, who chairs PAC, said: “Promoters of ‘boutique’ tax avoidance schemes like the one brought to our attention by the case of Jimmy Carr, are running rings around HMRC.
“They create schemes which exploit loopholes in legislation or abuse available tax reliefs such as those intended to encourage investment in British films, and then sign up as many clients as possible, knowing that it will take time for HMRC to change the law and shut the scheme down.”
