Penalties for „aggressive“ tax advisors?

British tax authorities consider penalties for advisors who promote tax avoidance schemes. Her Majesty’s Revenue and Customs (HMRC) published a discussion document titled Strengening tax avoidance sanctions and deterrents . So far only a penalty legislation for users of tax avoidance schemes already exists. In the future these sanctions will  also threaten the advisors promoting such schemes.

Public discussion

Comments shall be made by 12 October 2016. A response document will be published this year.

Personnel comment

I wonder what HMRC will do if smart tax advisors are situated outside of the United Kingdom and produce their schemes from abroad. Up until now the British tax authorities at least get some support from tax authorities of other EU member states. It remains to be seen whether this support will still be offered after Brexit finally gets put into place..

Author: Peter Scheller, Steuerberater – Master of International Taxation

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