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<\/a><\/p>\nWhat the paper says is\u00a0<\/span><\/p>\n Who is likely to be affected<\/strong><\/p>\n Those who artificially and unfairly seek to sidestep their tax liabilities, arising from avoidance, evasion or \u2018phoenixism\u2019, through the misuse of insolvency of companies.<\/p>\n General description of the measure<\/strong><\/p>\n This measure tackles the small minority of taxpayers who artificially and unfairly seek to reduce their tax bill through the misuse of insolvency of companies.<\/p>\n This will be achieved by making directors and other persons connected to those companies jointly and severally liable for the avoidance, evasion or \u2018phoenixism\u2019 debts of the corporate entity.<\/p>\n Policy objective<\/strong><\/p>\n The changes to this legislation ensure fairness across the tax system by deterring the use of tax avoidance and evasion through influencing the behaviour of those taxpayers who see insolvency as a way of avoiding their tax liability.<\/p>\n Those taxpayers:<\/p>\n There are, of course, provisions attached. Some are quite generous in the taxpayer's favour. But let's be clear that I welcome this, and think it should go further. I have been arguing for such a measure since 2011<\/a>\u00a0and argued for a robust approach to this issue in a Bill I wrote for the late Michael Meacher MP in 2014<\/a>. It's taken a\u00a0 long time to come, and it's still not tough enough on those using companies to evade tax, but it's progress. And I welcome that.<\/p>\n","protected":false},"excerpt":{"rendered":"\n