Managing deliberate defaulters
The Managing Deliberate Defaulters (MDD) programme will most certainly affect the accountancy profession when further documentation details are required for certain clients, reports the CIPP’s Diana Bruce.
In February 2011 HMRC launched the new Managing Deliberate Defaulters (MDD) programme where known tax cheats will face up to five years of detailed scrutiny under increased levels of tax inspection. More than 90% of British citizens pay their taxes and this programme targets the small minority who are deliberately withholding money from the revenue.
Within the 2009 Budget, the chancellor announced that those individuals who incur a penalty for deliberate evasion in respect of tax of £5,000 or more will be required to submit returns for up to the following five years showing more detailed business accounts information and detailing the nature and value of any balancing adjustments within the accounts.