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10 ways UK Labour plans to cut tax evasion and avoidance

Unveiling a plan to tackle tax avoidance and evasion, Ed Balls, the shadow chancellor of exchequer, said the issue will be at the top of a new Labour government's to-do list.

Balls said yesterday that if Labour wins the general election on May 7, he wanted to see, on the first day of government, "a draft Finance Bill which is an Anti-Tax Avoidance Bill" and a report from HM Revenue & Customs about what it was doing to tackle tax avoidance and evasion so Labour's already-announced inquiry into how HMRC operates could begin immediately. He added that he would also ask the Bank of England to focus on what impact risks from the informal economy, including avoidance, evasion and the tax gap, would have on delivering its financial stability objective.

The shadow chancellor said the 10-point plan would target the Treasury and HMRC with cutting avoidance and evasion by at least £7.5 billion ($11 billion) in each year of the next parliament (2015 - 2020). Labour's first Finance Bill will include the measures to implement the plan.

Tax has become a central issue in the UK general election campaign, as political parties strive to convince voters they will be tough on companies and individuals who do not pay what is due.

Labour's plan to tackle tax avoidance and evasion would, for example, abolish the rules allowing some UK residents to be domiciled outside the UK for tax reasons so they do not have to pay tax on their foreign income, though introducing a temporary residence rule in the UK for a short period of time, such as university students; reform rules allowing private equity managers to pay capital gains tax rather than income tax; compel the UK's Overseas Territories and Crown Dependencies to produce publicly available registers of beneficial ownership; increase penalties for tax avoidance and make country-by-country reports, which are being introduced as one of the results of the OECD-led base erosion and profit shifting (BEPS) project, publicly available.

The Conservatives responded on Twitter to the Labour announcement, arguing that it had taken action on many of the elements of the plan.

Labour tax avoidance package mainly things we have already done: GAAR penalties, ending disguised self employment, OTs and CDs etc

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