And the Tories say they will give the Pensions Regulator new powers to issue “punitive fines” and consider introducing a new criminal offence for directors who “ recklessly put at risk the ability of a pension scheme to meet its obligations.”
The party’s manifesto was published today and contained pledges to clamp down on tax evasion.
The document stated: “We have taken vigorous action against tax avoidance and evasion, closing the tax gap – the difference between the amount of tax due and the amount collected – to one of the lowest in the world.
“We will now go further. We will legislate for tougher regulation of tax advisory firms. We will take a more proactive approach to transparency and misuse of trusts.
“We will improve HMRC’s capabilities to stamp down on smuggling, including by improving our policing of the border as we leave the European Union. We will also take further measures to reduce online fraud in Value Added Tax.”
The Conservatives said that the current powers of regulators and the Pension Protection Fund were “insufficient to ensure that pension savers, pensioners and prudent company directors are protected from unscrupulous business owners”.
Therefore it pledged that a Conservative government “will act to tighten the rules against such abuse, and increase the punishment for those caught mismanaging pension schemes”.
The manifesto stated: “We will build on existing powers to give pension schemes and the Pensions Regulator the right to scrutinise, clear with conditions or in extreme cases stop mergers, takeovers or large financial commitments that threaten the solvency of the scheme.
“We will also give the Pensions Regulator new powers to issue punitive fines for those found to have wilfully le a pension scheme under-resourced and, if necessary, powers similar to those already held by the Insolvency Service to disqualify the company directors in question.
“We will consider introducing a new criminal offence for company directors who deliberately or recklessly put at risk the ability of a pension scheme to meet its obligations.”