New tax laws target evaders and avoiders

Treasury Minister Eddie Teare says new laws closing tax loopholes for those running personal service companies are aimed at both evaders and avoiders.

The legislation is due to have its third reading in the House of Keys tomorrow, and aims to force people using personal service companies to pay their fair share of income tax.

Such companies used by those who’d otherwise be directly employed can dramatically cut someone’s tax liability.

Mr Teare says the laws are aimed both at those who legally avoid tax – and those who break the law to evade it.