Posted: 22 April 2009
Issue: Vol 163, Issue 4202
Categories: News, Update, Admin, Tax adviser, Legal, Government
Keywords: Budget 2009, naming and shaming

Penalised tax defaulters' details will appear online

HMRC is to be allowed to 'name and shame' tax evaders as part of the department's online service.

Legislation will be introduced in Finance Bill 2009 to enable the Revenue to publish the names and details of individuals and companies who are penalised for deliberate defaults leading to a loss of tax of more than £25,000.

Names will not be published of those who make a full unprompted disclosure or a full prompted disclosure within the required time.

Details will be published quarterly on the Revenue website within one year of the penalty becoming final, and they will be removed after 12 months.

Currently, information about those who are convicted for deliberate tax defaults are published, but people who are subject to a civil penalty for such defaults remain confidential unless, exceptionally, their appeal against any penalty reaches the courts.

The criteria for publication will be tightly defined and linked to the penalties for errors legislated in FA 2007, Sch 24 (and amended by FA 2008, Sch 40) and penalties for failure to notify and certain VAT and excise wrongdoings, legislated in FA 2008, Sch 41.

Only those who are penalised for deliberate defaults or deliberate and concealed defaults will have their names and details published, not people who are penalised for having failed to take reasonable care.

The tax lost as a result of the deliberate defaults must exceed £25,000.

There will be exemption from publication for those who:

• make a full unprompted disclosure to HMRC of their defaults; and
• make a full prompted disclosure to HMRC within the required time (to be specified by HMRC).

There is an appeal right to an independent tribunal against all elements of the penalty, which would determine whether names would be published, and taxpayers will be informed prior to publication and be able to make representations to the Revenue.

Sufficient details will be published to ensure that the correct person is identified and the extent of the default.
This will include:

• name and address;
• trade, profession or sector;
• amount of tax, interest and penalties; and
• the period covered.

Details will not be published until all appeal avenues against the additional tax and penalties are exhausted or expired.

Ernst & Young’s Chris Oates said: ‘This is a major change in approach. HMRC prided itself on maintaining taxpayer confidentiality. Now people who evade tax, who thought their tax affairs are confidential, could now find their names and addresses splashed over the press’.

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