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. HMRC cannot currently examine plans which are not voluntarily disclosed.
UHY claimed that the criteria according to which schemes should be disclosed to HMRC lack clarity and appear to catch many common commercial transaction...