Tax evasion enablers face new stricter sanctions
HMRC has toughened its stance on tax evasion as of January 1st, 2017 in a bid to create a fairer system for all.
Enablers of offshore tax evasion will face larger fines, and may also be named and shamed by HMRC.
Lawyers, bankers, accountants and other advisers will face being fined a sum of £3,000 or all of the total tax they helped to evade, depending on which amount is higher.
The new powers were originally announced during the 2015 Budget, and will also permit HMRC to charge fines to those who provide professional advice or planning services to enable tax evasion.
Jane Ellison, the Financial Secretary to the Treasury, said:
“Tax evasion is a crime and as a Government we have led reform of the international tax system to root it out.”
Ellison added:
“The raft of measures we have introduced to tackle avoidance and evasion will create a level playing field for the vast majority of people and businesses who play fair and pay what is due.”
According to the Office for Budget Responsibility, the anti-avoidance measures are expected to bring in £2.6bn less than was claimed by the Conservative government. This amount is the equivalent of 12,000 full-time nurses employed each year for five years.
Although tax evasion is a serious concern for the Treasury, tax planning is a legitimate practice that complies with regulations. However, Wirral firms and traders should remember the importance of sourcing a reputable professional who deals with private wealth management to ensure compliance with current legislation.
