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Government sets out proposals to “call time” on tax evasion (17 July 2015)

Date: 17/07/2015
Duncan Lewis, Legal News Solicitors, Government sets out proposals to “call time” on tax evasion

The government has set out proposals for closing loopholes used by investors to avoid paying tax.

The Daily Mail reports that Treasury Minister David Gauke has said new proposed rules on tax evasion will mean people would no longer be able to claim they were unaware their activities were illegal or what their accountants were doing.

Currently, HMRC has to prove an individual or company intended to defraud the Inland Revenue.

Mr Gauke warned that updated legislation would leave offshore investors who hide their money in low-tax havens from Luxembourg, Switzerland and the Caribbean with “nowhere to hide”.

Companies will also no longer be able to claim they did not realise that accountants had “hidden” investments offshore – this currently makes it difficult for HMRC to prosecute companies for criminal activities such as tax evasion.

A second new law will also bar overseas investors from claiming that they did not know it was illegal not to declare offshore investments to HMRC for the purposes of tax.

A new “strict liability” offence will mean anyone can be prosecuted for tax evasion, whether or not they intentionally concealed assets from HMRC.

HMRC is also proposing to “name and shame” tax evaders – and introduce the same level of penalty for those who aid tax evasion as the tax evader.

Mr Gauke announced the proposed measures at HMRC’s Stakeholder Conference in London – and the proposals have been put out to public and industry consultation.

“Time’s up for people who don’t pay their fair share of tax by hiding their money offshore,” said Mr Gauke.

“People who evade tax, facilitate or turn a blind eye to tax evasion will now face powerful criminal and civil sanctions under our tough new regime.”

Chas Roy-Chowdhury from the Association of Chartered Certified Accountants said that careful consultation would be required before introducing tougher tax laws.

“While we welcome tougher laws on tax evasion, we must ensure people have been properly convicted and the appeals process exhausted before anyone is named and shamed,” said Mr Roy-Chowdhury.

“We must also make sure that HMRC is reasonable when introducing the new laws – while some people use ignorance as an excuse, others in large and complex corporations may not have known what was happening,” he added.

The Chancellor’s emergency Budget has already given HMRC new powers to take money from people’s bank accounts if they refuse to pay money owed to the Inland Revenue.

Duncan Lewis Criminal Lawyers

Duncan Lewis can advise on charges relating to tax evasion at any stage of a charge – and even before a charge is brought or if there is a possibility of an interview with HMRC.

There are Duncan Lewis offices nationwide and our expert taxation lawyers are able to advise on corporate tax matters and individual tax evasion allegations.

For expert legal advice on tax evasion charges, call Duncan Lewis criminal lawyers on 020 7923 4020.

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