Experienced IFA’s like Enable of Bishop’s Stortford know how important it is to be fully up to speed about tax advice. Revenue and Customs (HMRC) have announced new plans for tackling suspected tax fraud using civil powers. HMRC will offer some people suspected of tax fraud the opportunity to enter into a contract to disclose that fraud in exchange for a guarantee that they will not face criminal prosecution.
Gary Ashford, Head of Tax Investigations at RSM Tenon, has welcomed the new facility, saying:
“This is a positive development. HMRC’s proposals would potentially provide greater clarity to those who have deliberately got their tax wrong and now want to engage with the taxman to regularise their affairs..”
“This new facility will start to be used from 31 January. We are likely to see a flurry of big tax investigations starting then. Those pursued under the CDF can expect to have to pay the tax owed, interest and substantial penalties…..With HMRC targeting a five-fold increase in criminal prosecutions for evasion, the consequences of not clearing up tax irregularities could be grave.”
“The new procedures also raise the bar for tax advisers. Those seeking to advise clients in this area really will have to be sure they have the necessary skills and experience. There will be risks for client and adviser alike if these procedures are not followed properly – we are, after all, working in an area where criminal offences are being alleged.”
Independent Financial Advisors know tax efficiency is part of good financial management but it must operate within the law.
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