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A new consultation from HMRC looks at how to deter taxpayers using what the department considers to be abusive tax planning schemes.
The document, Strengthening Sanctions for Tax Avoidance, suggests removing the economic benefit of avoidance, and increasing the reporting requirements of those who enter into legal tax-dodging arrangements.
A new consultation from HMRC looks at how to deter taxpayers using what the department considers to be abusive tax planning schemes.
The document, Strengthening Sanctions for Tax Avoidance, suggests removing the economic benefit of avoidance, and increasing the reporting requirements of those who enter into legal tax-dodging arrangements.
The Revenue also proposes a surcharge on the repeated or concurrent use of schemes that fail, and serial avoiders could be required to:
- provide certificates about their use of abusive arrangements, to show whether they have used one in a particular period;
- pro-actively provide documents and information about their tax affairs, rather than waiting for an enquiry or information request from HMRC; and
- comply with a conduct notice or a stop notice requiring them to alter their behaviour.
A further consequence of entering special measures could be restricted access to tax breaks. A taxpayer with history of repeatedly abusing a particular loss relief could be denied it temporarily.
The consultation document also questions whether the deterrent effect of the general anti-abuse rule could be strengthened.
Comments should be sent by email no later than 12 March.
