Business Secretary Vince Cable has launched an investigation into why penalties, including fines, have not been meted out to companies failing to disclose their subsidiaries based in tax havens.
'We must do the maximum possible to stop tax avoidance using powers that haven't yet been invoked,' he said.
Labour MP Chuka Umunna is expected to table Parliamentary questions this week on the issue after being concerned about the lack of disclosure by companies.
There has been a systemic failure in this area.
The reason is simple: government thinks it should not regulate business. Look at what David Cameron says. And then you'll see exactly why civil servants have no inclination to enforce the law.
When regulation is seen as a burden on business - and not as the environment in which fair disclosure to create a level playing field occurs - then of course abuse occurs. Seemingly with official sanction endorsed by political masters.
Much more on this from me soon.
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From my experience Companies House was pretty ineffective at accounts regulation under the socialists. I remember having an enormous battle with them over a company that only had £1 of paid up share capital even though it was a PLC and required to have at least £12,500. My client was litigating against them and he wanted to make sure that they had some reserves. It took them two years and to do nothing despite numberous letters and they kept on saying “they preferred gentle persuasion”. They get very upset if you do not print your name under the accounts but do nothing if you fail to comply with generally accepted accounting principles.
@Alan Kennedy
Oh dear….the previous government were socialists? If you think that anything else you say lacks credibility
I agree Nw Labour were weak on this
But then they were neoliberals too…
I’m afraid you’ve just given away your “uninformed” status