Tax scheme promoters targeted in new clampdown

A new consultation outlining ways HMRC can tackle ‘persistent and determined’ promoters of tax avoidance schemes was released on Tax Day, in the government’s latest attempt to disrupt their efforts.  

9th Apr 2021
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It feels as though successive governments have been trying to clamp down on promoters of tax avoidance for decades.

Therefore, one might feel a natural weariness on learning that, in the wake of the Budget, the government has launched a 66-page consultation document, rather than implementing hard-hitting legislation with immediate effect.

The new consultation forms part of a strategy commenced with the controversial Independent Loan Charge Review and is intended to supplement the measures to be introduced in Finance Bill 2021 following a previous consultation on Tackling Promoters of Tax Avoidance.

Interested parties are urged to read and respond to the document, answering as many of the 38 questions as possible.

The consultation, which is directed at disrupting the efforts of “the most persistent and determined promoters of tax avoidance” runs between 23 March and 1 June and has four goals.

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Replies (7)

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By SteveHa
09th Apr 2021 13:26

Quote:
Increasing provision of information to taxpayers so that they can avoid or escape from (presumably illegal) “avoidance schemes” at the earliest opportunity.

Surely a contradiction. Evasion is illegal, avoidance is not.

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Replying to SteveHa:
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By joemac5367
09th Apr 2021 13:46

SteveHa wrote:

Quote: Increasing provision of information to taxpayers so that they can avoid or escape from (presumably illegal) “avoidance schemes” at the earliest opportunity.

Surely a contradiction. Evasion is illegal, avoidance is not.

Hence the "quotes" round the phrase

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Replying to joemac5367:
By SteveHa
09th Apr 2021 14:31

In reference to a technical document, the use of quotes would tend to be quoting, and not in the context of colloquial air quotes.

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By Paul Crowley
09th Apr 2021 17:49

Agree
Perhaps tax should be based on taxpayers morals, not the law. Keeping to the law is legal
Are there any worthy accountants in government?
All this from the organisation that gave us a peculiar view of 'expenses'
Given the political past, pot kettle black

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By Paul Crowley
09th Apr 2021 18:01

Is it just me?
I thought promoters are required to go through DoTAS
Give HMRC the opportunity to understand and rip apart the scheme ready to pounce on the first user.
But the scheme is not illegal until a case goes to the legal system and is not appealed

HMRC can cheat the system
As soon as they read the DoTAS thing they can snitch and get Boris to change the law inside 2 weeks or tell the Queen and get the law changed in minutes: whichever route the law can de changed to take effect from date HMRC notified

The system is at fault not the unregulated off shore promoters

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By jon_griffey
12th Apr 2021 09:38

Does this have to be so difficult? Surely the very easy way to deal with this is to make every company and individual in the chain - the designers, marketers, introducers, accountants, lawyers etc jointly and severally liable for the tax lost as well as the penalties. You will quickly find that professionals will not touch tax schemes with a bargepole.

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Replying to jon_griffey:
By SteveHa
13th Apr 2021 08:57

I disagree. Surely the solution is to draft and enact robust tax legislation rather than the wishy washy garbage we often have to contend with now.

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