Britain unveils tax evasion crackdown, targets corporations

LONDON (Reuters) - Britain unveiled new laws to crack down on tax evasion on Thursday, one of which will make large corporations criminally liable for failing to prevent economic crime within their organisations. Danny Alexander, Chancellor George Osborne's second-in-command, announced the measures a day after Osborne promised tough action on tax evasion in his final budget statement before a May 7 national election. "We are going even further," said Alexander. "We’re making it a crime if companies fail to put in place measures to stop economic crime happening in their organisations." Evading tax using offshore arrangements would also be made a "strict liability offence", meaning that pleading ignorance could no longer be used as a defence against criminal prosecution. The government is counting on raising billions of pounds by reducing tax evasion to help it erase a hefty budget deficit. Last month, in the wake of a scandal surrounding HSBC , Alexander said he was planning new laws on the issue. Tax evasion is already illegal in Britain but the new laws will also make it explicit that those assisting tax evaders will be open to punishment. Tax avoidance is not illegal. The government said it would hold a consultation on the new laws before introducing them at an unspecified date. "Tax evasion is a crime like any other," Alexander said. "If people help a burglar, they are accomplices and criminals too. Now it will be the same for those that help tax evaders," he said. (Writing by William James; Editing by Andrew Osborn)