Companies aiding tax evasion could be fined, says Osborne

The idea was raised yesterday by Liberal Democrat Treasury Chief Secretary Danny Alexander and Mr Osborne confirmed yesterday that the policy is being looked at by the coalition Government.

His comments came in a reply to Lib Dem Ian Swales (Redcar), who asked if corporations which facilitate evasion should be prosecuted.

Mr Osborne said: “The Chief Secretary raised yesterday a policy which we have been considering in the Treasury for the Budget which is around the penalties that should be paid by those who actively facilitate tax evasion.

“That is something we are looking at but of course you will have to wait for the Budget.”

Meanwhile, Mr Osborne said he was confident he could unravel a deal done with the French authorities to allow the Serious Fraud Office and “other prosecuting authorities” to investigate any wrongdoing by HSBC.

The Chancellor said the deal, struck by the last Labour government, meant only individuals could be prosecuted or pursued.

He was responding to Labour former minister Frank Dobson who asked whether HSBC’s other 555 subsidiary companies in tax evasions will be subject to an inquiry.

Mr Osborne said: “What I’d say to you is that some very serious allegations have been made about HSBC Swiss and its role in knowingly advising people on tax evasion.

“Of course this is a matter that our criminal authorities, prosecuting authorities will want to look into.”

He went on: “The information was received as a result of a negotiation with the French authorities about what use that information could be put to and the French agreement struck by the last Government said we could only use that for prosecuting or pursuing individuals with regard to their tax affairs.

“We are currently in active discussion which I think will come to a fruitful end to get the French to allow us to pass some of this information to the Serious Fraud Office and other prosecuting authorities to address the concern that you rightly raise about the potential or alleged role of banks in this affair.”