HMRC’s invitation to those involved in tax avoidance schemes to enter into discussions to settle ongoing investigations should not be taken lightly, according to tax experts at international accountancy firm Mazars.
Ann Bibby, tax partner in Mazars’ Birmingham office said: “HMRC’s attack on tax avoidance has been well publicised in the press.
“And the courts have recently been siding with HMRC when asked their opinion on whether the planning works or not.
“In response, HMRC has invited participants in tax avoidance schemes to enter into discussions to settle the ongoing investigations.
“The proposals are tailored to the nature of the planning,” she said.
HMRC is particularly taking a long hard look at Employee Benefit Trusts, UK GAAP Partnerships, Film Production Partnerships, UK GAAP Corporates, other partnership reliefs and allowances, and sole traders’ loss reliefs.
More details are available at http://www.hmrc.gov.uk/press/settle-opp-tax-avoid.htm
Ann Bibby said: “What is important to note is that individual partners or participants can settle their own affairs even if the partnership decides not to.
“HMRC are actively writing to individuals, inviting them to settle. If you are involved in any of the above planning exercises and would like independent advice, you should take expert professional advice immediately.
“Our tax investigations team is ready and willing to advise individuals who have received an offer of discussions from HMRC.”