Qui tam in the United Kingdom

The Government is becoming increasingly desperate to rake in every last penny of tax revenue. One quick solution to plug the looming budget deficit would be to take an axe to wasteful spending, but of course they want none of that.

Instead, they are trying everything possible to get their hands on as much money as they can. For example, we saw the amnesty-that-dare-not-speak-its-name, whereby UK residents with sources of income which have not been disclosed to the taxman, are now being invited to come forward and confess, pay the tax and interest, and only 10 per cent (as opposed to 100 per cent) of the penalty.

In addition, according to the Times, a crackdown is being planned on buy-to-let property landlords.

And the Home Office has just published proposals to introduce the qui tam concept (see pdf). Qui tam derives from the Latin expression 'qui tam pro domino rege quam pro sic ipso in hoc parte sequitur', meaning 'who as well for the king as for himself sues in this matter.' Under the qui tam principle, a citizen may take action against another who has defrauded the Government in some way (eg a tax dodger), and claim for himself some of the money recovered. This principle operates in the United States under the False Claims Act, from where the Home Office has drawn its inspiration.

Whether qui tam will work in the United Kingdom, remains to be seen. Something tells the Fisherman that it may not be quite as successful as the taxman hopes. The British are notoriously reserved about their financial affairs, so perhaps the only people who may be in a position to take action would be employees privy to tax dodging secrets of their employers. Or maybe a disgruntled ex-girlfriend of a dodgy white van man. But then again, how many benefit cheats or hosepipe users have ever been 'shopped' to the authorities, despite repeated encouragement to the public to do so? Perhaps the taxman hopes that the money incentive behind the qui tam principle will swing it in this case. The Fisherman is doubtful.