Minister attacks tax dodgers on morality

Those who fail to pay the correct amount of tax not only flout their legal duties, but they also renege on their moral obligations to society.



Such is the emotive message due today from Stephen Timms, financial secretary to the Treasury, who will address tax experts on the need to end avoidance and evasion.



Individuals and firms that fail to pay the right amount of tax, in the current climate, will "rob our public services of valuable resources," the minister is expected to say.



Timms will also say that "values of responsibility, morality and integrity are essential to tax fairness" – defined as each individual paying their 'fair share' in tax to society.



Extracts from his speech add that tax should be seen as a "moral issue" that "carries responsibility for every taxpayer," particularly at a time of strain on the public purse.



As a result, Timms will promise to increase disclosure requirements and penalties in new "action" against tax dodgers, state the extracts, seen by The Observer.



Other measures to clamp down on tax avoidance by individuals and companies are anticipated to follow in the Pre-Budget Report, due to be published next month.



However moves by HMRC to help repair the public finances are already underway, as the taxman will hike the rate of interest payable on late taxes to 3%, up from 2.5% currently.



Condemning the rise, accountants said the rate HMRC charged on late payment of most taxes from September 29 would be six times higher than the Bank of England base rate.