TaxCorporate TaxRevenue in avoidance climbdown

Revenue in avoidance climbdown

The Inland Revenue is set to back down over rules forcing firms to register all tax avoidance schemes.

Link: Detox for the tax avoidance industry

The taxman was due to meet with the industry’s professional bodies this week. The tax authority is expected to water down proposals to make accountants register tax avoidance schemes they intend to sell to clients.

Accountants have been fighting hard to win clarification on the proposals, which were first announced in the finance bill, because they claimed the Revenue would be flooded with registrations.

Mark Lee, chairman of the ICAEW tax faculty and director of tax services at WJB Chiltern, said: ‘I anticipate the regulations will be amended before they are fully finalised. They will want to amend the regulations to limit the extent to which firms will be making vast numbers of precautionary statements.’

Partners of the major accountancy firms said that the Revenue would be swamped with forms from firms because the new regulations had not made it clear what must be disclosed.

Estimates put the cost of complying with the new rules at £1m per firm.

John Whiting, tax partner at PricewaterhouseCoopers, said: ‘We don’t know what the rules are that we’re trying to comply with. The difficult part is trying to find out what has to be disclosed.’

As costs rise for the firms, so will the fee they charge their clients, as some of the burden is passed on. Experts have said clients could see their fees double in some cases.

The consultation period on the proposals ends on 30 June.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

4m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

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

8m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

8m Alia Shoaib, Reporter