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Investigations

The inconsistencies of HMRC’s unified system of fines

M Hunt (TC4183)

HMRC have extended the registration deadline of their contractor loan settlement opportunity.

Taxpayers now have until 30 June to notify the department that they wish to take part in the tax disclosure facility that was originally scheduled to close on 9 January.

A contractor loan scheme settlement is an arrangement in which a non-UK employer pays a worker untaxed income or a loan, instead of all or part of a salary. Individuals who take part in such a scheme may still have to pay income tax.

NS Haq (TC4192)

An accountant who grossly under-declared his income has been jailed for 16 months, after pleading guilty to seven tax fraud offences totalling in excess of £65,000.

HMRC found Stephen Douce, co-director of ACA Accountancy Services Ltd, Derby, claimed he and his wife both had an annual household income of only £4,500, when in fact he earned more than £56,000 a year.

His false self assessment submissions meant he evaded income tax and National Insurance contributions of £18,203.79 for himself and £1,591.21 for his wife.

Horses’ mobile homes are the latest target for HMRC investigators in their efforts to weed out tax evaders, experts have warned.

The Revenue suspects that some farmers and other rural concerns dishonestly claim luxury horseboxes as business expenses, according to accountancy group UHY Hacker Young, while other countryside firms fail to declare personal use of the vehicles, to dodge tax on benefits in kind.

The government does not plan to give itself powers to significantly alter the direct recovery of debts (DRD) rules by statutory instrument, Taxation has learned, following fears of a legal provision to enable the amendment of primary legislation.

T Lynch (TC4177)

HMRC have launched a consultation on the closure rules for enquiries, to examine the current process and the restrictions it puts on the department in resolving one or more aspects of an enquiry.

The Revenue is seeking views on plans to streamline the system by enabling tax officials to obtain early closure of one or more facets of an enquiry, when it is not appropriate to close the whole matter.

A tax agent who lied to cover up incorrect returns submitted for clients has been convicted of six offences, under the Fraud Act after an investigation by HMRC.

Christopher Jonathan Lunn who worked at his father’s company, Christopher Lunn & Co, sent false invoices to the Revenue to cover up an increase in the amount charged for accountancy fees on behalf of his employer’s clients.

Clients were given one low-cost bill for accountancy services, but they were increased when their accounts were submitted to the taxman.

CG Martin (TC4117)

Changes to direct recovery of debts raise questions about the power’s practicality

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