Enabler legislation must be targeted

HMRC has published a consultation Strengthening tax avoidance sanctions and deterrents. It centres on the proposals to bring sanctions against promoters and other intermediaries who design market or facilitate the use of tax avoidance arrangements that are defeated by HMRC. It also explains how the penalty regime will be changed for individuals whose tax returns are found to be inaccurate as a result of using such arrangements.

In the paper the Revenue says it will define an avoidance enabler and provide safeguards for those who are within that definition but are unaware that the services they deliver are connected to wider tax avoidance arrangements. An agent who prepares a client’s tax return for submission to HMRC is not the focus of this measure as long as they can show that they have advised their client not to implement the arrangements or that their client had not discussed...