UK promoters will be made to hand over customer databases under the proposals, allowing HM Revenue and Customs (HMRC) to formally warn clients directly about the deals they have signed up to and to work out how much tax they owe if the scheme fails.
Under the reforms, which will go out to consultation, a promoter who has been penalised for not abiding by the rules will also have to provide extra information to HMRC on all of their schemes, not just the one they were reprimanded for.
Treasury Minister David Gauke will tell the Policy Exchange:
Promoters of aggressive tax avoidance schemes will be forced to disclose their client lists to inspectors under a new crackdown, the Government will announce today.
Think tank scheme operators will be "named and shamed" for sharp practice, Treasury Minister David Gauke will tell the Policy Exchange.
It follows a wave of revelations about the financial loopholes used by the rich and famous to legally side-step hefty tax bills.
Last month comedian Jimmy Carr admitted to making a "terrible error of judgment" after it emerged he was using a scheme to pay an income tax rate as low as 1%.