Officials consider law on tax loopholes

TAX advisers and banks could soon be forced to provide Revenue with details of controversial tax schemes they market to clients, under radical proposals contained in confidential Department of Finance briefing documents.

Officials within the department confirmed yesterday that they were considering plans to copy tough British legislation that was brought in last year to cut down on the use of so-called “tax avoidance” schemes by companies and high earners. The proposals were first floated in discussions before last year’s Budget but could be in place before the end of the year.

Tax avoidance schemes aim to exploit loopholes in the law that allow those with hefty tax liabilities to cut their bills dramatically and, in some cases, reduce them to zero. The British Government’s move caused uproar within the financial community by forcing promoters of the schemes to disclose details of arrangements they put in place with their clients to reduce their tax liabilities.