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23 Apr 2009
The taxman has been accused of looking to regulate the tax profession ‘through the back door’, after releasing a consultation paper flagging up the possibility of fining and monitoring advisers.
Tax advisers have greeted Working with Tax Agents, a 43-page consultation, with great concern, particularly around plans to charge financial penalties for advisers who fail to take ‘reasonable care’ or are ‘deliberately non-compliant’ when dealing with tax affairs.
‘It’s regulation by the back door, the thin end of the wedge,’ said Roger Barnard, Tenon director of taxation. Anne Redston, visiting professor at King’s College London, said the consultation was one of the ‘most important debates ever’ for the tax profession. ‘My key message is for the profession to engage in the debate. It will affect the way we work.’
Grant Thornton senior tax manager Sheena Hay said HMRC was trying to ‘regulate this, that and the other’.
One adviser described HMRC staff as ‘swapping their bicycle clips for jackboots’.
Where there is sufficient evidence that the deliberate actions of an adviser put tax at risk HMRC could introduce financial penalties; report the person to their representative body or introduce monitoring. They could also refuse to deal with the adviser in the future.
The penalties could be structured in a manner of ways, including fixed, or linked to the tax at risk or the fee income or turnover.
‘If you’re competent then the bane of your existence, incompetent advisers, could be forced out, but if you make the odd mistake, how far would HMRC push these powers?’ Barnard added.
Richard Mannion, national tax director for Smith & Williamson, said he
was ‘relaxed’ about
the consultation, provided it is implemented and applied sensibly.
‘HMRC fully recognises that the overwhelming majority of agents perform to a high standard. This is not about introducing regulation through the back door,’ HMRC said.
More Budget News:
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Comment:
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Consultation Document: Working with Tax Agents
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Visitor comments Add your comment
Tax adviser fears?
Of course it will all come down to the phrase "reasonable care" and how the Revenue choose to interpret that. Knowing that they adopt a broad brush approach to most phrases like this - it is likely to become a major bone of contention.
Whilst taking every care I am not so pompous as to believe that I am not culpable somewhere along the line.
Concerned of Leicester.......
Posted by: Mark Brown, 25 Apr 2009 | 00:00
And what about fining the Revenue.?
Given HMRCs lack of competence in many areas, "pot", "kettle" and "black" comes to mind.
The Revenue would face virtually continual fines themselves for failing to take reasonable care.
And what about incompetent Chancellors.....?
Posted by: David Nicoll, 26 Apr 2009 | 00:00