Lords to inspect tax fraud measures

Longer prison terms for tax fraud research and development (R&D) reforms and HMRC data collection requirements are to be scrutinised by the House of Lords Finance Bill Sub-Committee.

The Economic Affairs Committee appoints this sub-committee annually to consider the draft Finance Bill from a tax administration clarification and simplification point of view. This autumn the sub-committee has singled out these measures:

• Dealing with the promoters of tax avoidance and increasing the maximum prison term for tax fraud – for example whether there are adequate safeguards and suitable governance around the criminal offence/disqualification measures and to find out how necessary these additions are to HMRC powers.
• The reforms which merge the two existing R&D schemes as well as providing a higher rate of payable tax credit for loss-making R&D intensive SMEs – for example how much simpler the new scheme will be and whether...