Piercing the corporate veil? Robert Waterson and Constantine Christofi (RPC) review the draft provisions that will empower HMRC to issue joint liability notices.
On 11 July 2019 HM Treasury and HMRC published draft legislation for the Finance Bill 2020 together with explanatory notes impact notes and consultation responses.
These materials and the legislation include provisions that allow HMRC to make directors and other persons involved in tax avoidance evasion or ‘phoenixism’ jointly and severally liable for a company’s tax liabilities if there is a risk that the company may enter insolvency.
Avoidance and insolvency
The new provisions will empower HMRC to issue joint liability notices (JLNs)to individuals when certain conditions are met (as set out below) and which apply equally to LLPs:
A company has entered into tax avoidance arrangements or engaged in tax evasive conduct.
The company is subject...
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Piercing the corporate veil? Robert Waterson and Constantine Christofi (RPC) review the draft provisions that will empower HMRC to issue joint liability notices.
On 11 July 2019 HM Treasury and HMRC published draft legislation for the Finance Bill 2020 together with explanatory notes impact notes and consultation responses.
These materials and the legislation include provisions that allow HMRC to make directors and other persons involved in tax avoidance evasion or ‘phoenixism’ jointly and severally liable for a company’s tax liabilities if there is a risk that the company may enter insolvency.
Avoidance and insolvency
The new provisions will empower HMRC to issue joint liability notices (JLNs)to individuals when certain conditions are met (as set out below) and which apply equally to LLPs:
A company has entered into tax avoidance arrangements or engaged in tax evasive conduct.
The company is subject...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
