LIFE will raise an additional £18Bn in revenues through:
- Reforming UK tax havens around the world
- Requiring multinational companies to disclose all financial data to all of the countries they operate in, including the distribution of resources and profits
- Tax the profits of all companies operating or selling in the UK
- Abolishing the UK domicile rule, making all British citizens responsible for making their contributions to the country irrespective of their current residency (same as USA)
- Requiring tax returns from all companies operating or selling in the UK and establishing automatic exchange of information between States on income earned by people and companies, so that no one can hide their income from tax authorities
- Scrap deals that preserve banking secrecy, with Switzerland and other states
- Ban secrecy surrounding offshore companies and trusts
Many of the above measures are included in the OECD’s recommendation to the G20, and LIFE supports those recommendations and is committed to their immediate implementation, unilaterally if other countries find reasons to delay.
Revenues from Reform
The data suggests tax losses might be £8.5 billion from UK resident high net worth individuals, £3 billion by large UK companies, and £7 billion as a result of tax evasion and related activities, or a total of not less than £18.5 billion per annum.
LIFE will also remove access to the British legal system from any dependent territories that continue to provide “tax haven” services after 2015.
It is part of the principles of LIFE that all citizens of the country make a fair contribution to our common welfare. In line with this principle we will abolish the “domicile rule” that allows citizens to escape national UK income tax – all UK citizens will be required to pay income tax on their worldwide income, irrespective of their residency. (If you think this is radical, please note that this is the same rule that applies to US citizens.)
After 2020 incomes taxes will include components of local income taxes for Communities and Regions, and those will not apply to citizens who do not have property and are not resident in those areas.