UK government to ban tax cheats from winning public sector work

white-hall-placeThe UK Treasury yesterday announced new rules that would mean that it can ban firms who avoid tax illegally from winning public sector contracts. The new system will come into force as early as April 1 of this year, leaving little time for consultation and are outlined in draft guidance published for consultation by the Government. It will require potential suppliers to notify contracting departments of their recent tax compliance history and to tell the department if any tax return has recently been found to be incorrect and if they have been convicted for tax related offences or subject to a penalty for civil fraud or evasion. Departments will be able to disqualify any bidder meeting these criteria from the procurement process.