UK partners could be made “equally responsible” for anti-avoidance regime penalties incurred by offshore promoters, it has been announced.
The move forms part of proposed new laws designed to crack down on tax avoidance schemes.
According to HM Revenue & Customs (HMRC), a range of new measures will be consulted on in spring 2021, including:
- making UK partners equally responsible for the anti-avoidance regime penalties incurred by offshore promoters
- giving taxpayers more information on the products sold to them by promoters
- ensuring promoters face quick and significant financial consequences for promoting tax avoidance so they do not continue to profit while HMRC investigates them, and
- providing HMRC with additional powers to shut down promoters that continue to promote schemes and to stop them from setting up similar businesses
As part of these measures, the Government will also consider requiring advisers to hold professional indemnity insurance, “giving taxpayers greater recourse against bad tax advice”.
The announcement comes after HMRC revealed that it raised almost £37 billion in tax revenues through enforcement activity in the tax year 2019/20 – up 1.4 per cent compared to the previous year. Over this period, the regulator said it prosecuted 4,123 people for evasion and avoidance.
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