Professional firms targeted to provide information

HMRC sent 1 414 production orders to accountants lawyers and other professional services firms in 2017-18 for information about clients it wants to investigate for suspected tax evasion RPC has revealed.

The City-headquartered law firm said HMRC has increased the number of criminal investigations into taxpayers who have taken part in tax planning arrangements such as employee benefit trusts and film finance investments. 

Production orders are issued by the department’s criminal investigation directorate to require third parties to provide it with information about their clients’ affairs. In the past the department tended to challenge such arrangements by the civil route through the tax tribunals but issuing a production order may help it obtain information leading to a criminal prosecution. 

Adam Craggs partner at RPC said: ‘When HMRC applies to the court for a production order it is important that the intended recipient obtains expert legal advice as soon...