New consultation: tougher consequences for promoters of tax avoidance.
02 May 2023
HM Revenue and Customs (HMRC) is continuing their tough stance on tax avoidance schemes and promotors. This new consultation, “Tougher consequences for promoters of tax avoidance”, brings forward some proposals to dissuade the use and promotion of such schemes.
This consultation is looking at giving HMRC more power to kerb these schemes and stop their promotion and use. There are two proposed changes within this consultation.
The first is regarding Stop Notices, a legally enforceable notice to any person they suspect is promoting tax avoidance arrangements. Stop Notices can incur civil penalties if breached from £5,000 per failure, up to £1 million for continuing to promote the arrangement.
The proposed change in this area is to make failing to comply with a stop notice a criminal offence, in addition to the civil penalties for non-compliance. HMRC is asking if this change is likely to have the desired outcome, deterring the use and promotion of such schemes.
The second proposal would give HMRC the power to expedite the disqualification of company directors. With the appropriate evidence, HMRC could bring a director to court to get the struck off without the involvement of the Insolvency Service (INSS), which is usually the case.
Your views will help shape proposals and feed into HMRC’s data gathering. The CIPP will be responding to various consultations released today, as part of the tax administration and maintenance day (TAMD). If you are interested and want to have a say, please keep an eye out for CIPP roundtable and think tank invites which will be sent to full, fellow and Chartered members.
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