City firms that have aided businesses avoid tax could face a huge penalty under new proposals.
Banks, accountancy firms and lawyers will be investigated to see if they’ve broken the law.
According to various media reports, firms that help clients exploit tax rules, including the use of offshore tax havens, could pay a fine of up to 100pc by HMRC.
Jane Ellison, the Financial Secretary to the Treasury, said: “People who peddle tax avoidance schemes deny the country of vital tax revenue and this government is determined to make sure they pay.”
“The vast majority of their schemes don’t work and can land their users in court facing large tax bills and other costs”, said Ms Ellison.