Call for action on carousel fraud advisers
The taxman has not done enough to report advisers involved with carousel fraud, the public accounts committee has concluded
In a report on the fraud, the parliamentary body said: ‘[HM Revenue &
Customs] was unable to show that it had actively stepped up the reporting of
accountants [and] tax advisers to their professional bodies for instances of
misconduct in response to the Committee’s previous report.
‘We recommended that the department should make greater use of sanctions
available to professional bodies to investigate unethical conduct by their
members,’ the report said.
In a letter issued by former chairman Sir David Varney in late 2005, the tax
authority implied that many advisers thought carousel fraud was just
sophisticated tax planning.
The institutes have argued that if there are issues with members, the taxman
should refer them to be disciplined by the institutes.