George Osborne has announced he will tackle tax avoidance by requiring users of tax avoidance schemes to ‘pay first, trial later’.

Before now, tax avoided through such schemes would generally not be paid until HMRC had proven  in court that the scheme was ineffective.

In the Autumn Statement 2013, the Chancellor announced the government intended to introduce a new requirement for taxpayers to pay disputed tax upfront where the avoidance scheme being used has been defeated in another party’s litigation through the courts.

OBR has confirmed an expected £4bn in tax receipts from this legislation.

The Chancellor said the government will take further action to reduce tax avoidance and to ensure everyone ‘pays their fair share.’

HMRC’s compliance yield target will be increased by a total of £1.6 billion over the coming two financial years.

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