HM Revenue and (HMRC) – Strengthening Avoidance Sanctions & Deterrents

In August a consultation was published on proposals to penalise accountants, tax planners and others (so called ‘enabler of ’), who provide services in the supply chain of tax avoidance arrangements. The proposals suggest a fine of up to 100% of the tax underpaid by the scheme’s user(s) to be imposed on enablers. HMRC completed a consultation with stakeholders in October.

Next steps

The results of the consultation will help to set objectives and identify options in the first of the five stage consultation process laid out by the UK’s Tax Consultation Framework.

PwC commentary

We welcome the consultation. A poorly directed measure would risk burdening the economy and HMRC alike, as taxpayers’ advisors seek clarification from HMRC on areas of uncertainty in the tax system before they are able to proceed with commercial transactions. Any new measures that are introduced must be appropriately targeted and proportionate so that taxpayers can continue to receive independent professional advice.

This document has been prepared to provide general guidance on matters of interest only, and do not constitute professional advice. You should not act upon the information contained herein without obtaining specific professional advice. . To the extent permitted by law, PricewaterhouseCoopers firms do not accept or assume any liability, responsibility or duty of care for any use of or reliance on this document by anyone, other than (i) the intended recipient to the extent agreed in the relevant contract for the matter to which this document relates (if any), or (ii) as expressly agreed by the relevant PricewaterhouseCoopers firm at its sole discretion in writing in advance.

© 2016 PricewaterhouseCoopers. All rights reserved. ‘PricewaterhouseCoopers’ refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.