HMRC seeks extra powers over examining tax reduction plans. By Dan Martin

HMRC is seeking new powers to force taxpayers to reveal details of any arrangements they make to reduce tax, accountants have revealed.

UHY Hacker Young said under new draft legislation failure to provide details of tax plans to the Revenue on request could attract a £5,000 fine and daily penalties of £600. Harsher charges could follow if plans are then not officially registered with HMRC, it added.

The firm said the proposed powers would mark a "radical departure" from existing disclosure rules under which tax plans only have to be disclosed if they meet certain criteria.

Continued...

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Comments

Surely not!

Anonymous | | Permalink

"HMRC will be able to scrutinise any tax planning arrangement it likes in detail"

I didn't thnk HMRC likes any tax planning arrangements.

More seriously, these new proposed powers relate to promoters of schemes. As the Revenue notes say:-
Section 306A(4): the first condition is that the scheme must be of a description
prescribed under section 306(1)(a). Those descriptions, commonly referred to as “hallmarks”, are set out in The Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations 2006 (SI 2006/1543).

What they do not do is put new burdens on taxpayers, but on their advisers , the so called 'promoters' under FA 2004 s307

It is noticeable that there appears to be no amendment proposed to s310 , which deals with 'in house' schemes.

Stating the obvious

mikewhit | | Permalink

OK, I declare that I shall be making full use of my personal allowance this year.

This is an arrangement I am making to reduce tax.

Is that what you wanted ?

;-)