The joint HM Treasury and HMRC paper, Tackling tax evasion and avoidance published last Thursday sets out the government’s proposed next steps in tackling evasion and avoidance. The proposals include:
the introduction of a new strict liability offence for offshore evasion (following the first consultation held between August and October 2014);
a further criminal offence of ‘corporate failure to prevent tax evasion or the facilitation of tax evasion’, following consultation; and
new ‘collateral’ civil penalties targeting the ‘enablers’ of tax evasion, following consultation.
(For further detail, see page 7.)
Professional standards: The government also called on the relevant regulatory bodies ‘to take on a greater lead and responsibility in setting and enforcing clear professional standards around the facilitation and promotion of avoidance to protect the reputation of the tax and accountancy profession and to act for the greater public good.’
In response, professional bodies defended their own standards of conduct, and said that the government should work with the tax profession on evasion and avoidance. Frank Haskew, head of the ICAEW tax faculty, said: ‘The public is rightly concerned about tax evasion, and we support efforts to tackle it. Over the last few years the government has introduced measures to reduce evasion and aggressive avoidance, including the GAAR, and it would be more prudent to see the effect these have first before introducing the raft of new laws that they have proposed. The ICAEW already has a professional code of conduct in relation to tax advice, which is revisited and updated on a regular basis. We are keen to work with the government to ensure that the code continues to be fit for purpose and retains public and political confidence.’
Meanwhile, CIOT president Anne Fairpo and ATT president Natalie Miller said: ‘We acknowledge that we share with the tax authorities the task of maintaining trust in the tax system. We are committed to continuing to work with government to do this. People are entitled to expect, and get, high ethical and professional standards from their tax advisers. Tax advisers within the CIOT, ATT and other professional bodies in tax and accountancy are bound by a robust code of professional conduct which sets out the standards required of them. This code requires members to comply with five fundamental principles: integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The code is public and has been in place for many years.
‘We believe this code does its job well. It is revised regularly to ensure it continues to be relevant. The current version was issued only last year but we continue to work with the other professional bodies, and in liaison with HMRC, in reviewing and revising the code as necessary. We will take on board the … challenge to look carefully at whether it needs further strengthening in relation to avoidance.’
The joint HM Treasury and HMRC paper, Tackling tax evasion and avoidance published last Thursday sets out the government’s proposed next steps in tackling evasion and avoidance. The proposals include:
the introduction of a new strict liability offence for offshore evasion (following the first consultation held between August and October 2014);
a further criminal offence of ‘corporate failure to prevent tax evasion or the facilitation of tax evasion’, following consultation; and
new ‘collateral’ civil penalties targeting the ‘enablers’ of tax evasion, following consultation.
(For further detail, see page 7.)
Professional standards: The government also called on the relevant regulatory bodies ‘to take on a greater lead and responsibility in setting and enforcing clear professional standards around the facilitation and promotion of avoidance to protect the reputation of the tax and accountancy profession and to act for the greater public good.’
In response, professional bodies defended their own standards of conduct, and said that the government should work with the tax profession on evasion and avoidance. Frank Haskew, head of the ICAEW tax faculty, said: ‘The public is rightly concerned about tax evasion, and we support efforts to tackle it. Over the last few years the government has introduced measures to reduce evasion and aggressive avoidance, including the GAAR, and it would be more prudent to see the effect these have first before introducing the raft of new laws that they have proposed. The ICAEW already has a professional code of conduct in relation to tax advice, which is revisited and updated on a regular basis. We are keen to work with the government to ensure that the code continues to be fit for purpose and retains public and political confidence.’
Meanwhile, CIOT president Anne Fairpo and ATT president Natalie Miller said: ‘We acknowledge that we share with the tax authorities the task of maintaining trust in the tax system. We are committed to continuing to work with government to do this. People are entitled to expect, and get, high ethical and professional standards from their tax advisers. Tax advisers within the CIOT, ATT and other professional bodies in tax and accountancy are bound by a robust code of professional conduct which sets out the standards required of them. This code requires members to comply with five fundamental principles: integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The code is public and has been in place for many years.
‘We believe this code does its job well. It is revised regularly to ensure it continues to be relevant. The current version was issued only last year but we continue to work with the other professional bodies, and in liaison with HMRC, in reviewing and revising the code as necessary. We will take on board the … challenge to look carefully at whether it needs further strengthening in relation to avoidance.’
