UK targets ‘high risk’ tax scheme promoters
Under new rules introduced by the UK Government, “high risk” promoters of tax avoidance schemes will have to publicize the fact that they are being monitored by HM Revenue and Customs (HMRC), reports Tax News.
Laws introduced last year allow HMRC to issue “high risk” promoters with Conduct Notices requiring them to change their behaviour. In its latest crackdown on tax avoidance, the Government has announced further rules that will mean that if a promoter does not comply with the terms of a Conduct Notice, they can be issued with a “Monitoring Notice.”
The issuance of a Monitoring Notice will mean that the promoter can be publicly named by HMRC. In turn, the promoter will have to inform their clients that they are being monitored. If they then fail to comply with the conditions of the Monitoring Notice, they could face fines of up to GBP1m (US$1.5m).
HMRC has already written to a number of promoters, warning them of the consequences of failing to modify their behaviour. It has also sent out its first Conduct Notice.
Financial Secretary to the Treasury David Gauke said: “The Government has taken unprecedented steps to clamp down on tax avoidance. Our tough new rules will force high risk promoters to change their behaviour and help protect taxpayers from unscrupulous advice. Promoters who do not change their ways should be in no doubt – HMRC is taking swift and decisive action to use these new rules.”
