Clegg hints GAAR could arrive in Budget 2012

Deputy prime minister Nick Clegg has suggested the Budget 2012 will contain new rules to tackle tax dodging by the rich.

Clegg placed emphasis on the creation of a new general anti-avoidance or anti-abuse rule (GAAR) in an interview with BBC Radio 4's Today this morning.

In December, a government-commissioned report recommended a GAAR as a viable way to crack down on tax abuse and simplify the system.

Clegg refused to confirm whether or not the GAAR will definitely be included in this year's budget, but said: "There should be a general rule that you cannot play the system.

"We have received a report from an expert, Graham Aaronson, which says an anti-abuse rule is feasible.

"I very much hope, and I am not going to write George Osborne's budget, [that] we can make progress on that in the budget.

"We have got to make sure the tax system is fair."

Clegg said there was anger among a number of citizens at the way in which large businesses managed to dodge tax payments.

"I think millions of people - and these are people who the Liberal Democrats are in politics for - who pay their taxes, who work hard, who aspire to do the right things for themselves and their families, are quite rightly angered there is a wealthy elite or large businesses who can pay an army of tax accountants to get out of paying their fair share of tax," he said.