Government propose new sanctions for tax avoidance
Following an announcement in the 2016 Budget in March, the government has recently released their sanction proposals for ‘enablers and users of tax avoidance’.
Although the majority of UK taxpayers comply with their tax obligations, the proposals set to target the minority who use tax avoidance methods. The consultation proposes new penalties for those who enable tax avoidance and recommends changes to the existing penalty legislation which applies to those who use avoidance.
The proposals are to introduce ‘sanctions for those who design, market or facilitate the use of tax avoidance arrangements which are defeated by HMRC and to change the way the existing penalty regime works for those whose tax returns are found to be inaccurate as a result of using such arrangements.’
The government is seeking views on proposals for sanctions against those who enable or use tax avoidance arrangements which are later defeated.
If you would like to review your tax situation you can contact our Tax Services team on 01903 234094.