TaxAdministrationNew rules may give advisers extra business

New rules may give advisers extra business

Tougher line on tax avoidance, combined with the 50% income tax rate, could boost demand for tax planners

hmrc building

Government plans to expand rules requiring the disclosure of tax avoidance
schemes to HM Revenue & Customs are likely to result in more schemes being
shut down, although it may boost business for tax advisers, experts have said.

In last week’s Budget, chancellor Alistair Darling announced plans to
increase penalties for failure to disclose tax avoidance schemes, and begin
discussions on how to spot aggressive avoidance schemes.

HMRC is also considering extending the criteria for disclosing an avoidance
scheme, as part of a review into the
Disclosure of Tax
Avoidance Schemes
(DOTAS) rules. Schemes currently must be reported if they
bear certain ‘hallmarks’.

Simon Palmer, head of international tax services at KPMG, said it was ‘almost
inevitable’ that the review of DOTAS rules will mean more tax planning schemes
are closed at an earlier stage.

But the tougher line on tax avoidance, combined with the 50% income tax rate,
could have a silver lining for accountants. Mike Down, tax investigations
partner at Baker Tilly, said: ‘[The DOTAS review] will boost demand for tax
planners, but whether the tax schemes will work is another question.’

Related Articles

LITRG urges government to consider tax changes in disability work plan

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

3d Lucy Skoulding, Reporter
HMRC issues updated Trusts Registration Service guidance

Administration HMRC issues updated Trusts Registration Service guidance

3w Emma Smith, Managing Editor
UK votes to leave EU – accountancy profession reacts

Accounting Firms UK votes to leave EU – accountancy profession reacts

1y Fraser Simpson, Reporter
‘Significant recovery’ for HMRC customer service, claims boss Thompson

Administration ‘Significant recovery’ for HMRC customer service, claims boss Thompson

2y Fraser Simpson, Reporter
HRMC loses £653,000 tax battle following administration error

Administration HRMC loses £653,000 tax battle following administration error

2y Fraser Simpson, Reporter
European inquiry into Panama Papers receives go-ahead

Administration European inquiry into Panama Papers receives go-ahead

2y Fraser Simpson, Reporter
MEPs push for stricter limits against corporate tax avoidance

Administration MEPs push for stricter limits against corporate tax avoidance

2y Fraser Simpson, Reporter
Bid to cut VAT bill on wedding venue hire rejected by Tribunal

Administration Bid to cut VAT bill on wedding venue hire rejected by Tribunal

2y Richard Crump, Writer