Should I object to suspended penalties for client who relied on previous adviser?
A client came to me from a firm that is the subject of a criminal investigation by HMRC. On hearing that HMRC suspected criminal behaviour on the part of her accountant, and that they planned to enquire into the returns of every single client of that accountant, she asked me to re-do her accounts and tax returns and re-submit them to HMRC. HMRC has now made an offer, suspending penalties of 15% for a year. Following the judgement in J R Hanson and the commissioners for HMRC (UKFTT 314), in which it was held that no penalty was payable as the taxpayer was entitled to rely on his accountant's advice, should I ask that the penalty be removed from the offer entirely?
The tax advice service provided by my PI insurer thinks that if I do this, HMRC might withdraw the offer of suspension, and we might end up having to go to the Tribunal.
Incidentally, I have spoken to the Inspector a couple of times and he seems quite reasonable. Would it be worth a phone call?
- Professional coaching claimable? 73 1
- Sage instant account codes 115 1
- Networking 127 1
- What VAT to reclaim on van purchased on HP? 264 4
- Mobile phones, directors of micro-companies 168 1
- Turnover on a tax return 296 8
- incorrect old p60 449 11
- Cashflow forecasting software 302 4
- Letter to HMRC over 3 months ago, still no reply 1,931 19
- Companies House paper incorporation - date of birth omission 287 4
- US company hiring UK citizens in UK 250 3
- VAT refund 182 1
- Is there an AIA calculator anywhere 260 1
- Reclaiming VAT on refurbishment cost? 268 3
- Missing tax return 392 4
- Are you going to Tick and Bash on 21 May? 1,127 30
- Inflation and fees 1,409 24
- Sage Priority Support 192 3
- Cost of demolition of a shed - revenue or capital? 846 24
- Micro-entity accounts 314 1