When he addresses the Liberal Democrat conference later today, Chief Secretary to the Treasury Danny Alexander will announce that the Government is “on track” to raise £4bn this year from cracking down further on tax dodgers.
At the conference two years ago, Mr Alexander announced £90m extra in resources for HM Revenue & Customs (HMRC) in order for them to pursue tax evaders both in the UK and offshore; and when he addresses the conference today, he will report on the department’s “good progress”.
He is also set to unveil plans to double the size of the HMRC team working on the Liechenstein Disclosure Facility (LDF) as part of a crackdown on people he accuses of “hiding” assets in offshore havens.
The LDF gives individuals with undisclosed income in Liechtenstein the opportunity to come forward and pay with a reduced penalty, capped at 10 per cent of tax evaded over the past 10 years.
Mr Alexander said that the Labour Government, which signed a deal in 2009 with Liechtenstein in 2009 to recoup lost tax, expected the agreement to raise £1bn.
However this Government now believes that it could yield £3bn, which is why it is devoting the extra manpower to oversee the process.
The Lib Dems pledged to raise £9bn by 2015 in their fight against tax avoidance and have recently announced other campaigns to achieve this, such as targeting homeowners with houses worth over £1m through HMRC’s “affluence unit”.
As an accountant, Sarah Jenkins, specialises in management accounting, business development and financial reporting.