Caroline Spelman MP has welcomed the launch of a new Government Consultation into Tax Evasion. The consultation will propose new measures that will ensure that the accountants and financial advisers who help their clients bend the rules to gain an unfair tax advantage face tougher penalties.
The consultation, which was launched yesterday by HMRC, is the Government’s first step in their latest crackdown on aggressive tax evasion as set out in the 2016 Budget. The documents includes; new proposals for sanctions for ‘enablers and users of tax avoidance’ which is identified and thwart by HMRC and, consideration of further ways to influence those contemplating tax avoidance.
The consultation is aimed to provide the Government with views from members of the public, representative bodies, advisers and promoters, as well as businesses and individuals who may have received marketing material (even where they have not undertaken what that material proposed), taken advice about, or used arrangements which seek to avoid tax.
Caroline Spelman said: ‘As announced in the Chancellor’s budget earlier this year, this consultation proposes new penalties for those who enable tax avoidance and changes to the existing penalty legislation which applies to those who use avoidance which is defeated’.
‘In addition to the tax being collected – these proposals could see the accountants or financial advisers who helped their clients avoid tax, pay fines equal to up to 100% of the total cost of the underpaid tax’.
‘People who peddle tax avoidance schemes deny the country of vital tax revenue, taking money away from vital public services’.
The consultation will run from 17 August 2016 to 12 October 2016 and is available here.