Professionals threatened with up to 100% penalties

By Steven Pinhey, Tax Director

HM Revenue & Customs (‘HMRC’) have issued their latest consultation aimed at tougher sanctions for those who enable tax avoidance and evasion.

Under new plans, HMRC could require accountants, lawyers, IFAs and other professionals who enable their clients to avoid tax to pay a fine of up to 100% of the tax the client has underpaid.

Up until now, whilst the client/taxpayer could face significant financial costs when HMRC defeat a scheme, those who advised them to participate face little or no financial risk. HMRC are seeking to change this!

These proposals are the latest in a number of government measures designed to tackle tax evasion and avoidance and include a new criminal offence for corporations that fail to prevent the facilitation of tax evasion, and new sanctions against those who engage in multiple avoidance schemes which are defeated by HMRC.

Lubbock Fine will ensure that the profession’s opinions are heard and will be replying to the consultation.

If you have any concerns about the proposed changes or would like to discuss HMRC’s continued attach on tax avoidance and evasion, please speak to Steven Pinhey, our Tax Disputes and Resolutions Director, on 020 7490 7766 or email stevenpinhey@lubbockfine.co.uk.

 

 

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