Alistair Darling today laid out plans in the Budget to name and shame people who avoid paying tax and will hold company finance chiefs personally liable if their accounting systems are found to be insufficient to report tax accurately.

The Government is set to publish the names and details of companies and individuals who deliberately underpay or avoid tax of £25,000 or more as part of a wider move to claw in £1 billion is lost revenue over the next three years.

While senior accounting officers in large companies will be held personally responsible if the accounting process is inadequate and could be fined if the taxman deems the system to be insufficient to report tax accurately.

The Treasury said today that it will establish "a statutory requirement for senior accounting officers of major corporates to certify personally that adequate controls to prepare accurate tax computations are in place."

Budget 2009: A step-by-step guide

Alistair Darling has revealed the steps he believes will drag Britain out of the worst economic slump since 1946

• Jobless hits 2.1m as public debt soars to £90bn

• Budget reaction: chorus of disappointment

• Alistair Darling's Budget tax hike for the rich sets election battle line

BACKGROUND

• Home sales fears despite stamp duty extension

• Power boost to wind and oil

• Wealthy pension investors hit

• David Cameron bites back at 'fictional' Budget

• Budget 2009: speech in full

Related Links

• Allegations of tax avoidance at Barclays

• Save the tax havens – we need them

• Yacht broker pleads guilty in UBS tax case

Commenting on the new "name and shame" approach to tax payments, Chris Oates, a partner in tax Controversy & risk management at Ernst & Young, the accountancy firm, said: “This is a major change in approach. HMRC prided itself on maintaining taxpayer confidentiality. Now people who evade tax, who thought their tax affairs are confidential, could now find their names and addresses splashed over the press.”

On the fines, and liability, that finance directors and accounting chiefs face over poor systems, he said: "Why anyone would take such a role, with the potential of being personally liable to substantial penalties, is beyond me. It could be the riskiest job in town."

The Treasury said today: "Offshore accounts are being used by some to shield undeclared taxable income. HMRC will seek to issue notices requiring financial institutions to provide information about offshore account holders."

Mr Darling said "...it cannot be fair that those who should pay tax, are allowed to avoid it."

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive