The Treasury is set to announce plans for a new, tougher penalty regime for accountants and other advisers who offer ‘aggressive’ tax avoidance schemes, with fines of up to 100% of the tax underpaid by clients if such schemes are challenged, in a bid to crack down further on tax losses
The official announcement is due later today, but pre-released information indicates that HMRC is seeking new powers to address the ‘supply chain’ of tax avoidance arrangements.
Jane Ellison, financial secretary to the Treasury, will unveil the details, which will be subject to a 12-week consultation period.
‘People who peddle tax avoidance schemes deny the country of vital tax revenue and this government is determined to make sure they pay.
‘The vast majority of their schemes don’t work and can land their users in court facing large tax bills and other costs.
‘These tough new sanctions will make would-be enablers think twice and in turn reduce the number of schemes on the market,’ Ellison is expected to say.
The consultation is also expected to look at the definition of a tax avoidance scheme, and at how penalties will be levied if a scheme is defeated in court.
The move follows HMRC’s push for 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. Shortly after assuming the role of prime minister, Theresa May said tax was "the price we pay for living in a civilised society", and promised a crack-down on avoidance.
‘It doesn't matter to me whether you're Amazon, Google or Starbucks. You have a duty to put something back, you have a debt to fellow citizens and you have a responsibility to pay your taxes,” May said at the time.
