Sarah Bradford looks at measures to be introduced in the Finance Bill 2019-20 to tackle tax evasion through the misuse of insolvency.
Draft legislation has been published which introduces a measure designed to counter the use of insolvency as a way of avoiding tax liabilities. It will be introduced in Finance Bill 2019-20.
In brief, the measure seeks to achieve this by making directors and other persons connected to those companies jointly and severally liable for the avoidance, evasion or ‘phoenixism’ of debts of the corporate entity. The measure is to apply from the date of Royal Assent to the Finance Bill 2019-20.
Changes are also made to the insolvency legislation.
Background
At the time of the autumn Budget 2017 and spring statement
