UK: Tax avoidance enablers to face tough new penalties

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August 17 2016

Accountants, tax planners and advisers who provide advice on how to avoid tax will face tough penalties under new proposals being consulted on by the government, Financial Secretary to the Treasury Jane Ellison announced today. Under the plans set out in an HMRC consultation document issued today, enablers of tax avoidance could have to pay a fine of up to 100 per cent of the tax the scheme’s user underpaid.

Currently tax avoiders face significant financial costs when HMRC defeats them in court. However, those who advised on, or facilitated, the avoidance bear little risk. The government is acting to make sure that tax avoidance is rooted out at source and this action will target all those in the supply chain of tax avoidance arrangements.