A practical guide on the powers of HMRC
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Transcript of A practical guide on the powers of HMRC
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A practical guide on the powers of HMRC
Presentation by: Sue Bradshaw Date: 3 September 2009The Paper Trail
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Sue Bradshaw
BTG-Tax
• Former Senior Tax Investigator in HMRC – 25 years
• Headed HMRC Specialist Investigations Civil Fraud Investigators in London
• Board of HMRC National Offshore Project team
• 7 years in private practice assisting individuals and companies with taxation matters
Tel no: +_44 (0) 207 024 8374Mobile: +_44 (0) 7765 095459E-mail: [email protected]
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Sue Bradshaw
BTG-Tax
• HMRC information powers – new rules
• HMRC penalties – new rules
• Risk assessment etc.
• UK compliance activity in the offshore arena
• New Disclosure Opportunity and Liechtenstein Disclosure Facility
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Sue Bradshaw
BTG-Tax
New Powers and Penalties
• Overhaul of HMRC Powers and Penalties
• Brings together Inland Revenue and Customs
• Behaviour based legislation
• Information and Inspection powers
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Sue Bradshaw
BTG-Tax
New Powers – From 1 April 2009HMRC have new powers to:
• gather information and examine documents
• Inspect business premises and business assets and business documents on those premises
• check records before filing
But
• Info/docs must reasonably be required to check a person’s tax position
• Still some restrictions for some types of highly confidential information
• Safeguards to ensure HMRC act reasonably
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Sue Bradshaw
BTG-Tax
New Penalties- from 1 April 2009
• Return periods on/after 1 April 2008 and due to be filed on/after 1 April 2009
• Submission of incorrect document
• All taxes
• Now applies to Understatements and Inflated losses
• No penalty for mistake
• Fixed band penalties related to behaviour
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Sue Bradshaw
BTG-Tax
100%
0%
Deliberate
Max 30%
Min 15% (with PD)
Min 0% (with UPD)
Max 70%
Min 35% (with PD)
Min 20% (with UPD)
Max 100%
Min 50% (with PD)
Min 30% (with UPD)
Failure to take reasonable care
understatement with concealment
Mistake Deliberate understatement
Ranges of Penalties (Sch 24 Para10 FA 2007)
UPD = Unprompted disclosurePD = Prompted disclosure
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Sue Bradshaw
BTG-Tax
0
20
40
60
80
Not takingreasonable care
Deliberateunderstatement
Deliberateunderstatement with
concealment
Average Level of Penalty new and old regimes
Old Regime
New Regime
‘Old’ Penalty Regime v New Regime
Paying the penalty – HMRC new approach to compliance
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Sue Bradshaw
BTG-Tax
HMRC’s Compliance Activity – New procedures
• Disclosure of Tax Avoidance Schemes
• Litigation and Settlement Strategy
• Risk Assessment for Large Corporates
• Personal Tax Accountability of Senior Accounting Officer
• Publishing the names of deliberate tax defaulters
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Sue Bradshaw
BTG-Tax HMRC’s Compliance Activity - Offshore
• ‘Amnesty’- 2007 Offshore Disclosure Facility
• Offshore Bank Data - information notices to 308 banks – very recently
• ‘Amnesty’- New disclosure opportunity – 1 September 2009 to 12 March 2010- Liechtenstein Disclosure Facility – 1 September 2009 to 31 March 2010
• Cross Border Cooperation – G20, various Exchange agreements- Bermuda - Jersey - Anguilla- Isle of Man - Guernsey - Turks and Caicos- Gibraltar - BVI - Liechtenstein
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Sue BradshawBTG Tax
SummaryNew powers and penalties • Document retention• Guidance/plan for Inspections• Manage information/inspection notices• Voluntary disclosure will reduce penalties
Risk assessment/SAO certificate• Ensure systems and processes are robust
Overseas accounts/companies/assets • properly managed and disclosed• Use NDO/LDF if appropriate to gain beneficial settlement
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Sue BradshawBTG-Tax
Questions.