LONDON: HM Revenue & Customs (HMRC) is ramping up its tax avoidance crackdown by forcing ‘high risk’ schemes to reveal to clients that they are being monitored by the taxman and issuing £1 million fines.
In October 2014 HMRC gained powers to issue conduct notes to tax avoidance schemes it deemed as ‘high risk’ which could require them to make changes to the way they are structured.
HMRC has now gained further powers which mean if a scheme does not comply with the terms of a conduct note, it will issue a tougher ‘monitoring notice’ which will mean the scheme will be publicly named and will have to tell clients they are being monitored.
HMRC will also have the power to issue fines up to £1 million if schemes fail to comply with the terms of the monitoring notice.
David Gauke, financial secretary to the Treasury, 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.’
