CIOT responds on tax evasion penalties increase

CIOT responds on tax evasion penalties increase

CIOT responds on tax evasion penalties increase

CIOT responds on tax evasion penalties increase

The Chartered Institute of Taxation (CIOT) has responded to today’s announcement by HM Revenue and Customs (HMRC) of a package of measures to tackle tax avoidance and evasion, including new powers to combat offshore evasion with combined penalties of up to 200 per cent of the unpaid tax.

Gary Ashford, Chairman of the CIOT’s Management of Taxes sub-committee, says:

“We support HMRC in cracking down on evasion, providing sanctions are targeted at those who flout the rules and support is provided for those who are trying to comply.

“The new proposal to require notification when opening an offshore account will potentially help HMRC to reduce transfers into offshore accounts. The potential overall increase in penalties to 200 per cent should also encourage those with undeclared offshore income to come forward under the current New Disclosure Opportunity before the notification deadline on 4 January 2010.

“However, to make this work, HMRC will need to work hard publicising it and making the ramifications of non-compliance very clear, in what is now a very short space of time. It may be the case that they should extend the 4 January deadline yet further. Naming and shaming of deliberate tax defaulters from April 2010 will also have an impact.”

Notes

The Chartered Institute of Taxation (CIOT) is a charity and the leading professional body in the United Kingdom concerned solely with taxation. The CIOT’s primary purpose is to promote education and study of the administration and practice of taxation. One of the key aims is to achieve a better, more efficient, tax system for all affected by it – taxpayers, advisers and the authorities.

The CIOT’s comments and recommendations on tax issues are made solely in order to achieve its primary purpose: it is politically neutral in its work. The CIOT will seek to draw on its members’ experience in private practice, government, commerce and industry and academia to argue and explain how public policy objectives (to the extent that these are clearly stated or can be discerned) can most effectively be achieved.

The CIOT’s 14,900 members have the practising title of ‘Chartered Tax Adviser’.

(gcrozier@ciot.org.uk) or John Whiting on 020 7340 0591 or 07710 027595 (jwhiting@ciot.org.uk)