TaxPersonal TaxNew HMRC amnesty is branded ‘unworkable’

New HMRC amnesty is branded 'unworkable'

A new tax amnesty is unworkable and unlikely, according to advisers

Following meetings between the taxman and 170 private banks and investment
managers last week, reports have suggested that HM Revenue & Customs might
access their clients’ offshore accounts to check for unpaid tax while
introducing a second

Offshore Disclosure Facility, aimed at encouraging individuals to admit they
owe tax.
But advisers said that there was little or no chance of a new facility, due to
problems it would cause with original disclosers.

‘HMRC has got itself into a bind, they didn’t plan ahead,’ said Baker Tilly
head of tax George Bull.

According to Bull, HMRC’s original scheme had not attracted enough
large-scale tax evaders because the taxman had not removed the threat of
prosecution, so smaller evaders disclosed.

‘HMRC has a duty to give [tax] certainty, how could it justify a more relaxed
OD?’ he added.

‘They said originally that they wouldn’t do it again,’ said
PricewaterhouseCoopers tax partner John Whiting. ‘[Individuals] would have based
their decision on what they were told at the time. It would surprise me if HMRC
offered another “amnesty”.’

HMRC refused to rule out another disclosure facility, stating that ‘no
decision had been made’.

‘Our main concern is that people only get one chance, the first facility
wasn’t limited to whom could [take advantage] of it,’ said an HMRC spokeswoman.
‘It’s still under consideration,’ she added.

Around 60,000 individuals came forward during the initial amnesty to declare
unpaid tax. They have until 26 November to pay what they owe to take advantage
of the facility’s terms.

HMRC is chasing individuals who did not disclose before the initial cut-off
of 22 June, which is believed to be as many as another 100,000 cases.

Related Articles

Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

2w Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

2m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

4m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

5m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

6m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

7m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

9m Alia Shoaib, Reporter