The spring statement included proposals to strengthen the HMRC’s powers in tackling tax avoidance and evasion. HMRC already has significant authority to collect taxpayer information and issue “Stop Notices” to prevent the promotion of tax schemes. The new proposal introduces a “Universal Stop Notice,” which would extend this restriction to anyone promoting the same or a “similar” scheme, with potential criminal penalties for violations. The consultation also suggests narrowing Legal Professional Privilege in specific circumstances, affecting the confidentiality between lawyers and clients.
In an article for WealthBriefing, Partner Hugo Smith outlines concerns tax professionals have with these proposals.
"A further consultation seeks to enhance HMRC’s powers to obtain information and impose greater sanctions on tax advisors who "harm the tax system and who facilitate non-compliance of their clients." It is clearly desirable to combat tax evasion and to discourage the use of abusive avoidance schemes. The concern with the proposals is that they are widely drawn and as well as catching their intended targets have the potential to include responsible professionals legitimately advising their clients on tax planning."
Hugo Smith
Partner
Read the full article on the WealthBriefing website.
