18 July 2011
Revised legislation for handling misconduct
Fresh proposals to clamp down on dishonest tax agents have been published by HMRC in light of responses to Working with Tax Agents: The Next Stage, the consulation issued in December 2009, which led to draft legislation, published in February 2010, that was strongly .
The latest discussion paper, Working with Tax Agents: Dishonest Conduct, sets out the Revenue's revised proposals and draft rules.
Key points include:
- Issuing of 'dishonest conduct' notices, with a right of appeal, where there is evidence a tax agent has dishonestly advised or assisted clients.
- Access to the working papers of dishonest tax agents, subject to approval by the First-tier Tribunal once conduct has been determined.
- Where working papers are no longer in the power or possession of the tax agent, HMRC will be able to request them from a third party.
- A civil penalty on the dishonest tax agent, and power allowing the Revenue to publish details on its website when an agent does not make a full disclosure.
The new document also notes that only illegitimate tax loss will be caught, after concerns were expressed that legitimate tax planning, such as advising a client to invest in an ISA, could be caught within the remit to stamp out dishonest advisers.
The consultation period will end on 16 September 2011.
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