Fending off the taxman
In the last few years, the powers of the taxman have increased significantly, particularly since the merger of HM Customs & Excise with the Inland Revenue to form HM Revenue & Customs (“HMRC”).
The penalties for non-compliance, including late payment of taxes, have become more onerous and their full impact has yet to be felt.
Life has become more and more difficult for peddlers of artificial avoidance schemes and would be customers have become increasingly wary of the risks of succumbing to their dubious charms.
Above all, the last few years has seen a range of HMRC initiatives, such as the Offshore Disclosure Facility, the New Disclosure Opportunity, the Liechtenstein Disclosure Facility and the series of “tax plans” targeted at sectors where tax has been identified as being at risk: medical professionals, plumbers, coaches and tutors, with a plan for electricians starting in February and others to follow in the course of 2012.
HMRC are now in the process of pursuing a number of enquiries where they have information in their possession suggesting serious omissions from past tax returns and where the taxpayers in question have not taken advantage of previous initiatives to make a full disclosure.
At UNW we are dealing with a number of such cases, ranging from Civil Investigation of Fraud enquiries under Code of Practice 9 handled by HMRC Specialist Investigations to follow up enquiries from the Tax Health Plan Team where a referral to Criminal Investigations with a view to prosecution is threatened.
The majority of these cases have been referred to UNW on the grounds that our Tax Team – including as it does both former Inland Revenue and Customs & Excise officers - has the experience and the expertise to deal firmly but constructively with HMRC and ensure that the client’s position is properly defended throughout until settlement is negotiated.
If you are unfortunate enough to be on the receiving end of a tax enquiry, or have reason to think that you may become the target of one in the future, and would like to discuss your position in confidence please telephone Charles Linaker on 0191 243 6004 (Direct Dial) or e-mailcharleslinaker@unw.co.uk
Other 2012 news
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Dissolution (striking off) of companies
With effect from 1 March 2012, new legislation enacting Extra-statutory Concession C16 will impose a limit of £25k on distributions that can be treated as capital payments.
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HMRC plans further “tax cheats” campaigns
New campaigns will be launched by HMRC later this year aimed at missing tax returns; home improvement trades, including plumbers and electricians; and direct selling (including E-marketplaces).
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VAT: Cost Sharing Exemption
Further developments from HMRC eagerly awaited by charitable and other non VATable sectors.
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ITR deadline extended to 2 February 2012
HMRC have announced a temporary extension of deadline to 2 February 2012 because of strike by Public and Commercial Services Union.
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Fending off the taxman
Charles Linaker discusses the current position on tax investigations.
