'Wrongdoing' deadline to be extended

HMRC are to extend the consultation period on the planned rules concerning ‘deliberate wrongdoing’ by tax advisers.

The deadline for comments will be put back from 3 March to 28 April, putting the introduction of resulting legislation beyond the Finance Bill resulting from next month’s Budget, and into the next parliament.

The condoc was issued last week as part of the Revenue’s Working with Tax Agents programme. It immediately came under harsh criticism from within the profession, with senior chartered accountant Chris Try claiming the proposals amounted to a declaration of war by the Revenue on tax advisers.

The Chartered Institute of Taxation (CIOT) said the taxman’s document had been written to apply not just to illegal actions but also to anyone offering advice that could lead to a tax loss for the Treasury, meaning that person ‘would be likely to be breaking the law’.

‘We fully support HMRC having a power to deal effectively with the very small number of agents who are involved in what amounts to fraud in relation to a client’s tax liabilities, but the legislation as drafted went far wider,’ remarked CIOT president Andrew Hubbard.

‘In our opinion, it would have been unworkable and would have created a very damaging rift between HMRC and tax advisers. We believe that the extension to the time limit will allow time for mature reflection and result in legislation that is properly targeted, effective and proportionate.’

Issue: 4244 / Categories: News , Working with Tax Agents , Admin