LONDON, March 22 (Reuters) - Britain's Labour government will announce plans to impose up to 200 percent fines on the most devious tax evaders in Wednesday's budget, a government source said on Monday.
The fine will mean those who have gone to the greatest lengths to avoid paying tax by hiding cash in the most secretive offshore havens could end up paying the amount they owe and then the same amount twice again.
Britain, which currently imposes 100 percent fines on tax evaders, is cracking down on tax avoidance to bolster revenues as the Labour government seeks to cut a budget deficit set to hit 12 percent of gross domestic product this year.
'Everyone must pay thier fair share of tax,' the source said. 'The message is very clear to tax cheats -- if you try and hide what you owe the the penalties will be very severe.'
(Reporting by Matt Falloon) Keywords: BRITAIN BUDGET/EVASION (UK Economics desk, uk.economics@reuters.com, Tel: +44 207 542 1894) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The fine will mean those who have gone to the greatest lengths to avoid paying tax by hiding cash in the most secretive offshore havens could end up paying the amount they owe and then the same amount twice again.
Britain, which currently imposes 100 percent fines on tax evaders, is cracking down on tax avoidance to bolster revenues as the Labour government seeks to cut a budget deficit set to hit 12 percent of gross domestic product this year.
'Everyone must pay thier fair share of tax,' the source said. 'The message is very clear to tax cheats -- if you try and hide what you owe the the penalties will be very severe.'
(Reporting by Matt Falloon) Keywords: BRITAIN BUDGET/EVASION (UK Economics desk, uk.economics@reuters.com, Tel: +44 207 542 1894) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.