Labour MP Michael Meacher is to table a Private Member's Bill that hopes to stop tax avoidance “for good”.
The Bill is an attempt to create the first General Anti-Tax Avoidance Principle in UK tax law.
The proposed Bill comes as the consultation ends on the government’s planned general anti-abuse rule (GAAR), which is designed to tackle “aggressive” tax avoidance.
Critics of the proposed GAAR, say that it isn’t tough enough and won’t make much difference in countering abuse of the tax system.
Unlike the government’s GAAR, the new Anti-Avoidance Bill covers VAT and national insurance, Meacher said.
It also clamps down on people who shift income from one tax to another in order to reduce their tax bill.