Crime Solicitors

HM Revenue and Customs (HMRC) is expected to announce new proposals under which companies which try and avoid paying tax would be placed in special measures.

The Telegraph reports the proposal could be announced as early as Monday (27/07/15), with a consultation launched as part of the Chancellor’s plans to tighten up compliance for companies, as set out in his Emergency Budget.

It is expected that the government will consult on a range of new policies, including measures to prevent corporate tax avoidance, such as a “voluntary Code of Practice” for companies. A consultation document was published on 20 July.

The consultation will define “the standards HMRC expects large businesses to meet in their relationship with HMRC”.

The Chancellor George Osborne has expressed a wish to close tax loopholes which involve companies being registered offshore – or who move large sums of money via a network of offshore financial institutions as a tax-efficient means.

Some of the most successful companies in the world have also paid proportionately little or no tax in the UK as a result of claiming they have never made a profit in Britain.

Included in the new proposals to prevent tax avoidance could be a bar on companies claiming that they were unaware of the tax efficiency measure their accountants were taking on their behalf.

Companies could also be required to discuss with HMRC any “grey areas” of tax efficiency before going ahead with an investment or scheme.

In a letter to tax directors, HMRC said the consultation would comprise details of the new measures, which would lead to increased transparency in relation to large business tax strategies, as well as a voluntary Code of Practice defining the standards HMRC expects large businesses to meet in their relationship with HMRC – and the introduction of a “special measures” regime to tackle businesses that persistently adopt highly aggressive behaviours including around tax planning.

The letter went on to say:

“These new measures do not represent a fundamental shift for HMRC, but rather a strengthening of our existing strategy.

“They are specifically designed to discourage large businesses from pursuing aggressive tax planning arrangements, and to provide additional sanctions against the small minority of large businesses that persist in unacceptable behaviours.

“We will consult on these measures over the summer, working to a Finance Bill 2016 implementation timeline.

“The consultation document is due to be published on Gov.uk on 20th July.

“Once the consultation is launched, we will welcome questions and contributions from business, so there will be plenty of opportunity for you to shape the conversation at that stage.”

Duncan Lewis Fraud Solicitors

Duncan Lewis fraud solicitors can advise individuals and companies facing allegation of company fraud or business fraud, including tax evasion, or tax avoidance.

Duncan Lewis fraud solicitors have offices nationwide – and offer clear, independent legal advice to companies and individuals facing an investigation by HM Revenue and Customs – or who fear they may face an investigation, including investigations relating to:

• Conspiracy to defraud HM Revenue and Customs
• Criminal tax fraud
• Forgery
• Tax evasion
• Money laundering
• VAT avoidance.

For expert legal advice on company fraud, financial fraud and tax evasion, call Duncan Lewis fraud solicitors on 020 7923 4020.