Tax Compliance

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Tax | HMRC sets rules for Worldwide Disclosure Facility on unreported offshore accounts

HMRC has released guidance for taxpayers with non-disclosed offshore tax accounts who want to use the worldwide disclosure facility (WDF), due to open on 5 September

26 Aug 2016

Tax | HMRC too fragmented and failing to address customer service

Ongoing problems with poor customer service, a siloed approach to departmental organisation and cuts in staffing at HMRC remain critical areas of concern for key stakeholders, incuding regulators, MPs and tax agents, interviewed for the latest HMRC stakeholder survey

26 Aug 2016

Tax | EU and EEA nationals pay more in tax than claim in benefits

Latest HMRC statistics show that European Economic Area (EEA) nationals in the UK pay more in income tax and national insurance contributions (NICs) than they take out in tax credits and child benefit, with the biggest contributions coming from French and Irish nationals

25 Aug 2016

Tax | US Treasury hits out at ‘supra-national’ EU probe into Apple tax

The US Treasury department has fired a warning at the European Commission ahead of its expected ruling on whether Ireland offered Apple a preferential tax arrangement amounting to state aid, suggesting its investigations into the technology giant and other US multinationals are undermining multilateral progress on reducing tax avoidance and are based on a ‘selective’ interpretation of transfer pricing rules

25 Aug 2016

Tax | HMRC plans ‘requirement to correct’ for offshore tax evaders

As part of a package of moves to tackle offshore tax evasion, HMRC is consulting on plans to introduce a ‘Requirement to Correct’ (RTC) obligation compelling those with offshore interests who have yet to put their UK tax affairs in order to do so by September 2018, ahead of the widespread adoption of the Common Reporting Standard (CRS)

24 Aug 2016

Tax | Worldwide Disclosure Facility for offshore tax evaders effective 5 September

HMRC is to set up a Worldwide Disclosure Facility to allow taxpayers with offshore non-disclosed accounts to legitimise their tax arrangements, although details about the actual restrictions and penalties are not clear, nor a closing date for the amnesty period

24 Aug 2016

Tax | Help to Buy ISAs cannot be used for house deposit at exchange of contract

The effectiveness of the government’s Help to Buy ISA scheme has been questioned since first time buyers are not able to withdraw the funds when they are required at point of exchange of contracts when buying their first property

23 Aug 2016

Tax | Liechtenstein signs up to automatic tax information exchange

Liechtenstein is the latest signatory to OECD’s Convention on Mutual Administrative Assistance in Tax Matters, signalling its commitment to tackle tax evasion in the jurisdiction by agreeing to the automatic exchange of financial tax information

23 Aug 2016

Tax | OECD consults on branch mismatch structures to curb profit shifting

The OECD is consulting on the mechanics of dealing with branch mismatch structures under Base Erosion & Profit Shifting (BEPS) Action 2, designed to neutralise the effects of hybrid mismatch arrangements as part of the wider anti-avoidance action plan

23 Aug 2016

Tax | MP leads call to end Scottish Limited Partnerships

SNP MP Roger Mullin is leading calls to scrap Scottish Limited Partnerships (SLPs) over fears it facilitates ‘aggressive’ tax avoidance and financial crime

23 Aug 2016

Tax | Treasury revisits new non dom rules with grace period for mixed funds

The government is committed to planned reforms to the way non doms - individuals with a foreign domicile - are taxed in the UK and is consulting on updated proposals which include charging inheritance tax (IHT) on UK properties, and also a review of Business Interest Relief (BIR) rules to encourage greater investment into UK businesses post-Brexit

22 Aug 2016

Tax | Nunn: HMRC penalty regime takes taxpayers to the brink

Yvette Nunn sees a trend towards aggressive tax cases as HMRC increasingly takes a hard line over minor infringements of tax rules, which oftentimes are down to trivial errors, with the recent cases of J & W Brown and Steady a prime example with trivial fines heading to court

22 Aug 2016

Tax | Editor’s comment: ‘enablers’ targeted in extreme avoidance crackdown

The latest power grab by HMRC will see a series of harsh penalties for the so-called ‘enablers’ of aggressive tax avoidance schemes, described colourfully as 'peddlers' by the financial secretary to the Treasury but will these measures simply create more confusion over definitions and liabilities, asks Sara White, editor of Accountancy

22 Aug 2016

Tax | Bank surcharge boosts corporation tax receipts to £7.5bn

The total corporation tax for July hit £7.5bn in July, boosted by the first receipts from the new bank surcharge, which totalled £343m, but the budget surplus currently stands at under £1bn, compared to £1.2bn in the same month last year

19 Aug 2016

Tax | HMRC signals move to points-based penalty system for taxpayers

HMRC plans to use the introduction of the Making Tax Digital (MTD) online strategy to move to a points-based penalty regime for failure to submit tax information on time, using a graduated model similar to the ‘speeding points’ system used for drivers who break the law, and is also potentially seeking wider investigative powers

19 Aug 2016

Tax | Revised code of conduct for tax advisers close to Treasury approval

Plans to release the long-awaited, revised tax advisers’ professional code - the Professional Conduct in Relation to Taxation (PCRT) - is likely to go ahead following the announcement of the government’s decision to fine accountants and tax advisers who push ‘aggressive’ tax schemes

18 Aug 2016