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There is no let up in tax fraud crackdown

The latest game-changing proposal from HM Revenue & Customs shows that its commitment to clamping down on tax evasion is stronger than ever, according to regulatory expert Jeremy Scott of Langleys Solicitors in York.

In a consultation earlier this year, HMRC proposed to extend powers currently in draft legislation which allow it to issue payment notices to anyone who has used an avoidance scheme that a court has ruled against.

The measure was announced in last year’s Autumn Statement and will be introduced in the 2014 Finance Bill. But in its consultation paper, HMRC says the draft power “does not go far enough”.

It wants payment notices to be extended to anyone who has used a tax avoidance scheme into which HMRC has an open inquiry. It is currently investigating 65,000 individuals and businesses that have used marketed avoidance schemes. It says 85 per cent of these cases took place more than four years ago. The rules will apply to both existing and new cases.

“This is another nail in the coffin for old-style tax avoidance,” said Jeremy Scott, regulatory partner at Langleys Solicitors. “HMRC’s campaign to improve tax compliance has seen over 2,300 people prosecuted in the last three years, and it expects to bring more than 1,100 tax fraud prosecutions in 2014-15.

“This proposal will see HMRC collect millions in unpaid tax, and it sends a clear message to those who think they can bend the rules.”

During 2013 HMRC investigations led to 690 successful convictions – up from 477 in 2012, and the highest since the 2010 Spending Review. These convictions led to sentences totalling 355 years in prison. More than 60 regional taskforces have been set up across the UK since 2011.

For further information visit www.langleys.com

This was posted in Bdaily's Members' News section by Langleys Solicitors .