CIoT president urges challenge to “dodgy” tax scheme promoters

CIoT president urges challenge to “dodgy” tax scheme promoters

Patrick Stevens, president of the CIoT, says rules governing the mis-selling of artificial tax schemes must be better enforced

THE PROMOTION and mis-selling of tax schemes with no real prospect of working should be challenged, according to the president of the Chartered Institute of Taxation.

Speaking at the CIoT’s annual parliamentary reception, Patrick Stevens said rules governing the sale of artificial schemes needed to be treated in the same way as the financial services mis-selling rules. However, he stopped short of suggesting more legislation was required.

He said: “We need to consider the nature of the schemes that claim to wipe out income tax. Many people in my profession believe that most of them simply do not work, and indeed that they shouldn’t work.

“If we built on the financial services mis-selling rules, they would attack the promoters and sellers of schemes that have no real prospect of working – who are the ones who really make the money from such arrangements.”

He went on to add that morality and parliament’s intention “only gets us so far”, and that “fundamentally, tax bills must be based on the law, not on a possibly arbitrary view or decision”.

A general anti-abuse rule (GAAR) is currently under consultation in order to tackle avoidance schemes that go against the intention of existing tax law.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource