HMRC are seeking views on proposals to tackle the ‘very small number’ of tax agents who engage in dishonest conduct.
The proposals include the issue of ‘dishonest conduct notices’, HMRC access to working papers, a civil penalty and publication of the details of dishonest tax agents who have not made a full disclosure.
HMRC have published a 12-minute video on YouTube, providing an introduction to the department’s services for tax agents.
Access to an agent’s working papers would be subject to approval by the First Tier Tax Tribunal once dishonest conduct has been determined, HMRC said. The proposed definition of ‘tax agent’ has been tightened in response to an earlier consultation.
‘HMRC needs to be able to take effective civil action against a small number of dishonest agents. Tackling dishonesty reassures the public, supports honest tax agents and protects them against unfair competition,’ said Dave Hartnett, Permanent Secretary for Tax.
‘HMRC has worked closely with the representative bodies to develop draft legislation which provides a fair, balanced and proportionate response.’
A summary of responsesto the December 2009 consultation Working with Tax Agents: The Next Stage, and draft legislation to address deliberate wrongdoing, published in February 2010, has also been published today. HMRC have acknowledged that their interpretation of the draft legislation was ‘at odds with that of the vast majority of tax professionals’.
‘Respondents agreed that tax agents who engage in “deliberate wrongdoing” served no-one’s interests and should be tackled firmly,’ HMRC added, but the majority ‘still had serious concerns’ about HMRC’s proposals.
‘Many respondents were unconvinced that HMRC needed new powers. They felt that HMRC should use its existing powers more effectively and where necessary prosecute agents involved in such fraudulentbehaviour.’
HMRC believe, however, that not all cases are suitable for criminal investigation.
HMRC are seeking views on proposals to tackle the ‘very small number’ of tax agents who engage in dishonest conduct.
The proposals include the issue of ‘dishonest conduct notices’, HMRC access to working papers, a civil penalty and publication of the details of dishonest tax agents who have not made a full disclosure.
HMRC have published a 12-minute video on YouTube, providing an introduction to the department’s services for tax agents.
Access to an agent’s working papers would be subject to approval by the First Tier Tax Tribunal once dishonest conduct has been determined, HMRC said. The proposed definition of ‘tax agent’ has been tightened in response to an earlier consultation.
‘HMRC needs to be able to take effective civil action against a small number of dishonest agents. Tackling dishonesty reassures the public, supports honest tax agents and protects them against unfair competition,’ said Dave Hartnett, Permanent Secretary for Tax.
‘HMRC has worked closely with the representative bodies to develop draft legislation which provides a fair, balanced and proportionate response.’
A summary of responsesto the December 2009 consultation Working with Tax Agents: The Next Stage, and draft legislation to address deliberate wrongdoing, published in February 2010, has also been published today. HMRC have acknowledged that their interpretation of the draft legislation was ‘at odds with that of the vast majority of tax professionals’.
‘Respondents agreed that tax agents who engage in “deliberate wrongdoing” served no-one’s interests and should be tackled firmly,’ HMRC added, but the majority ‘still had serious concerns’ about HMRC’s proposals.
‘Many respondents were unconvinced that HMRC needed new powers. They felt that HMRC should use its existing powers more effectively and where necessary prosecute agents involved in such fraudulentbehaviour.’
HMRC believe, however, that not all cases are suitable for criminal investigation.
