HMRC Is Shite: power

Showing posts with label power. Show all posts

Tuesday, 7 June 2016

HMRC's Plans For The Future - A Boot Stamping On a Human Face Forever

This sentence appears in HMRC’s “Single departmental plan” for 2015‑20:

“We will raise an additional £5bn a year by 2019‑20 by tackling tax avoidance and tax planning, evasion and compliance, and by addressing imbalances in the tax system.”

Thus it would seem that avoidance, which is perfectly legal, will become "illegal" in the eyes of HMRC. In fact, even the very attempt to plan your tax affairs will seemingly incur the wrath of HMRC.

George Bull, of RSM, is quoted by the Telegraph:

“Most of the tax planning we see involves individuals and companies doing no more than claiming the tax reliefs to which they are entitled, for purposes specifically intended by Parliament.

An attack on routine tax planning would be a major shift in HMRC’s approach and would seem to pit the administration (in the form of HMRC) against the legislature (Parliament), which has enacted specific legislation for specific purposes.

If the plain words of the HMRC single departmental plan are to be taken at face value, it looks as though we can expect a seismic shift in the way taxes are dealt with in the UK.”

HMRC appears to be getting ideas above its station, and needs to be slapped down!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Monday, 6 June 2016

HMRC Withdraws APNs

As a result of a judicial review, lodged by law firm RPC, HMRC has withdrawn hundreds of accelerated payment notices (APNs). APNs have not been flavour of the month with taxpayers, as APNs enable HMRC to demand tax it believes it is owed before the dispute is adjudicated. Those affected only have 90 days to pay the sum, and have no right of appeal.

Unsurprisingly, giving HMRC such powers has resulted in many cock ups. Earlier this year, HMRC backtracked 2,000 APNs because conditions for their issuing were not satisfied.

RPC challenged HMRC on a number of grounds, including that the Employee Benefit Trust arrangements under consideration were not "notifiable" to the Revenue under the DOTAS regime. The firm said HMRC has now admitted that it did not have the right to issue the APNs related to those arrangements.

Adam Craggs, partner and head of tax disputes at RPC, is quoted by economia:

“HMRC’s policy of issuing accelerated payment notices seems to be ‘shoot first and ask questions later'.

It is regrettable that the taxpayers concerned were put to the inconvenience and expense of having to commence judicial review proceedings before HMRC acknowledged that the APNs were unlawful."

An HMRC spokesperson said:

“We don’t comment on individual cases. There is no mass withdrawal of APNs. We have withdrawn accelerated payment notices from schemes where their promoters brought them to our attention when they did not legally have to. We have issued over 50,000 such notices and collected over £2.5billion for the UK.

Just because a notice has been withdrawn it doesn’t mean there is no tax to pay. The underlying tax dispute remains until it is settled or taken to court.”

Mr Craggs intimates that HMRC is talking bollocks:

"HMRC appear to be issuing APNs on an industrial scale with little consideration to the constraints contained within the legislation.

There were repeated warnings from many in the tax profession when the Accelerated Payment Notices legislation was announced that there were insufficient safeguards for taxpayers and the lack of independent judicial scrutiny was a concern to many.

As this case demonstrates, any taxpayer in receipt of an Accelerated Payment Notice should not assume that HMRC has followed the correct internal processes and exercised its powers lawfully.”

As noted above, if you give an organisation power to demand money upfront with little or no checks and balances that organisation will misuse that power.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Friday, 11 December 2015

HMRC Judge, Jury and Executioner

Despite warnings, the government will go ahead with plans to consult on legislation that will create a new criminal offence for corporations that fail to take appropriate steps to prevent the facilitation of tax avoidance.

Pinsent Masons, the law firm, notes that the new law will be difficult to impose against overseas firms. Jason Collins, partner and head of tax at Pinsent Masons, is quoted by economia warning of the dangers of trial by press release:

“You can’t extradite a company.

HMRC may resort to 'prosecution by press release' – i.e., by issuing criminal proceedings which, because they are in the public domain, will mean the foreign company has to decide whether to respond in the public domain.

This is the sort of legislation of which US law-makers would be proud. It is a bold attempt by the UK to extend the arm of its law beyond its borders. It needs to be matched with resources to police the offence otherwise it will become a damp squib.”

The government has also published further details on new powers that will allow HMRC to levy penalties on companies that persistently engage in aggressive tax planning.

A large business can be placed under what HMRC describes as “special measures” if it judges it to have an ongoing history of tax planning. HMRC’s “special measures” could then be used to impose harsher penalties if any unpaid tax is due to a “speculative interpretation” of UK law.

Pinsent Masons are of the view that HMRC is free to decide what this “speculative interpretation” is. Heather Self, partner at Pinsent Masons said:

“The new terms effectively leave HMRC as judge, jury and executioner on these businesses’ approach to tax.

That is a very subjective judgement and is likely to result in some very contentious penalties when it is used.”

Handing more powers to HMRC, given its track record of mistakes and abusing its current powers, is not step in the right direction.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Thursday, 27 August 2015

HMRC's Tsunami of New Powers

The FT reports that the UK is preparing to triple the number of prosecutions of “serious and complex” tax evaders using a "tsunami" (a quote made by a nameless tax official) of proposed new powers.

An HMRC unit, combining civil and criminal investigations teams, will spearhead a crackdown that George Osborne claims will increase tax revenue by £7.2BN.

However, as with all hyped promises of greater tax revenues, it is likely HMRC will end up going for easy to pick low hanging fruit rather than those with top notch lawyers and tax advisers.

Even the Office for Budget Responsibility has raised doubts about the extent to which the planned new tax measures will help the chancellor close the deficit.

The proposals include introducing “strict liability” in tax cases. This would mean that claiming evasion had been accidental would be no defence unless there was a “reasonable excuse”. A second is for a charge that could be brought against companies, rather than individual executives or directors, that evade tax, as well as the agents that help them.

It is noteworthy that HMRC are loudly reminding everyone that the Liechtenstein Disclosure Facility is to close at the end of this year. This indicates that HMRC may not be as confident as it claims about being able to hit high targets with its new powers.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Friday, 10 July 2015

HMRC Given Powers To Raid Bank Accounts

Wednesday's Budget announcement by Osborne failed to mention that HMRC will be given powers to raid bank accounts and ISAs of people who are recalcitrant with paying their taxes.

As per P94 of the Budget, quoted by This Is Money:

"This government will introduce legislation to modernise and strengthen HMRC's powers to recover tax and tax credit debts directly from debtors' bank and building society accounts, including funds held in cash Isas.

Having widely consulted, this measure will be subject to robust safeguards including a county court appeal process and a face-to-face visit to every debtor before they are considered for debt recovery through this measure."

Let us trust that HMRC never makes any mistakes when taking a dip!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Tuesday, 2 December 2014

HMRC Review of Its Powers of Entry

HMRC was ordered by the Chancellor to review its powers of entry, and published a report on 27 November.

HMRC has 39 powers, nine of which belonged to other departments or were powers to inspect rather than enter.

Five of the remaining 30 powers will be "modernised/consolidated".

It is interesting to note that HMRC performed the review itself, and itself determined "that 25 of the 30 powers need no amendment because they are necessary and proportionate in their current form".

Surely the review should have been performed by an independent party?

Anyhoo, leaving aside the thorny question of independence, as per HMRC:

"Under the Protection of Freedoms Act 2012, each secretary of state must review the powers of entry they are responsible for, and report back to Parliament.

This review, ordered by Chancellor of the Exchequer George Osborne MP, examines the powers of entry held by HM Revenue and Customs (HMRC).

It was laid before Parliament on 27 November 2014.

In summary, HMRC reviewed 39 powers.

Nine were found to belong to other departments or be powers to inspect rather than enter.

HMRC will retain 25 of the 30 powers in their current form. All of these powers were previously reviewed after the merger of HM Customs & Excise and the Inland Revenue in 2005, and this further review has reaffirmed that they are still proportionate and necessary.

There are five powers where there is a clear case for modernisation and consolidation, including a number relating to betting and debt management. These have been recommended for amendment and this will take place by the end of 2014."

Something worth keeping an eye on methinks!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Thursday, 10 July 2014

Homer Places HMRC Above The Law

The Treasury Select Committee has warned that it continues to have "considerable concern" about proposals for HMRC to be allowed to deduct money directly from tax debtors' bank accounts.

Unsurprisingly Lin Homer continues to deny that there is a problem with this proposal, and told the committee that it doesn't breach Magna Carta protections for the individual against the state.

In addition to wanting to raid bank accounts of recalcitrant tax debtors, Homer and her gang want to access bank statements going back 12 months and to freeze the accounts of those HMRC deem to be recalcitrant for 14 days whilst HMRC "check spending patterns".

Now you and I might point out to Homer and her gang that there are already laws at HMRC's disposal, that enable it to recoup money from the recalcitrant. The problem, from Homer's perspective, is that these laws require HMRC to prove (via the courts) that it has a right to extract monies owed.

In Homer's view the courts are simply too slow and expensive; ie she wants HMRC to be placed above the law!

The committee takes a dim view of Homer's desire to ride roughshod over the law, and has already warned in a recent report that the new powers would be "wholly unacceptable" without a requirement for independent approval from a court, ombudsman or tribunal before money was taken.

Homer was having none of that, she is quoted by the Guardian:

"I believe that for the taxpayer as a whole, it is right that we have sufficient powers to stop these limited numbers of people avoiding paying tax.

We are talking about 17,000 people who don't dispute the tax is due, they just don't pay. We will have written to them, we will have engaged with them and they just fold their arms and wait for us to take some other action.

Of course, we can go to court, but the cost both in time and money of going to court will often outweigh or seriously diminish the amount of tax collected. In these cases, we believe with proper safeguards... this is a fairer way of extracting the tax everybody is due to pay."

The Liberal Democrat committee member John Thurso said that HMRC was trying to become judge, jury and executioner and to remove legal protections from those who it believes owe tax, simply because it was slow and expensive to follow the legal processes.

All of this, if Homer's wish is granted, for a poxy £375M over four years!

Ironically, when quizzed about whether HMRC would pay compensation when (not "if") it made a mistake Homer said it would be up the courts to decide the amount. These being the same courts that she doesn't want to use when raiding people's bank accounts!

To grant Homer and her chums in HMRC these powers would be madness in the extreme!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Thursday, 1 May 2014

Paul Aplin Sounds Warning Bells

Paul Aplin, tax partner with A C Mole & Sons and Chairman of the ICAEW Tax Faculty Technical Committee, has written a blog on economia warning about the new powers being proposed for HMRC wrt offshore accounts and accessing debts from people's bank accounts.

Here is his article as it appears on the economia site:

"My first inclination was not to write about this subject because others have written about it recently for economia. Having just read the Hansard report of the first day’s Finance Bill Committee proceedings however I changed my mind.

My subject is two proposed new powers for HMRC. Neither is contained in the 2014 Finance Bill but both are scheduled for the 2015 Finance Bill. There is, therefore, still time to do something about them.

The first power

The first proposed power would enable HMRC to collect tax debts direct from people’s bank accounts where the debt is established and where HMRC has taken steps to recover it but the taxpayer has still failed to pay. Some 53 pages into the Budget Red Book those of us who spend our time reading the small print in such documents found the following statement:

“The government will modernise and strengthen HMRC’s debt collection powers to recover financial assets from the bank accounts of debtors who owe over £1,000 of tax or tax credit debts, have the financial means to pay, and have been contacted multiple times by HMRC to pay. A minimum of £5,000 will be left across debtors’ accounts. This brings the UK in line with many other tax authorities which already have the power to recover debts directly from an individual’s account, such as France and the US.”

This rang some pretty loud warning bells for me, not because I don’t want HMRC to collect tax that is due, but because I fear the potential for serious errors or mistakes.

A couple of years ago I received a letter at home threatening a visit to mark my goods for auction as I had ignored correspondence about a tax debt. I did not actually have a tax debt ( the fact that no figure for tax was shown on the threatening letter was something that might have given the person who sent the letter pause for thought but clearly didn’t). Fortunately I knew what to do next because of the job I do, but what if I hadn’t?

The week after the Budget announcement was made one of my clients was threatened with a visit to collect a PAYE debt that had been paid weeks earlier and another client was called (he said the tone of the call was pretty stern) about a VAT debt that had also been paid. Both clients have an excellent history of paying their tax on time.

This week a client received a “most people pay their taxes on time so why haven’t you?” letter requesting payment of tax shown as due on an HMRC self-assessment amendment. The amendment was dated 10 April and the chasing letter was dated 16 April.

All of these were administrative errors. All had explanations. All caused irritation, wasted time and unnecessary worry. I suspect most practitioners reading this will have had similar experiences.

And that is why I am worried about the proposed new power. I think HMRC should be as well, because it will only take one or two cases of this going wrong to create some very bad headlines.

The measure is up for consultation and the best outcome would be for it to be dropped. No-one should have access to a citizen’s bank account without the sanction or oversight of the court.

The second power

The second proposal is for there to be a presumption that someone who has undeclared taxable offshore income has failed to declare it deliberately. They should therefore be presumed guilty unless and until proved innocent. I do not defend deliberate failure to disclose offshore taxable income: those who deliberately fail to declare taxable income should be dealt with robustly. Tax evasion is a crime. This reversal of the usual presumption of innocence however is an extremely alarming proposal.

I am concerned that a fundamental principle of law is being turned on its head. I am also concerned about the potential for perfectly innocent situations to lead to utterly ghastly consequences.

Again this measure will be consulted on and again I hope that it will be re-thought.

The role of Parliament

During the summer both proposals will, as I have said, be consulted on. It is important that ICAEW and others make our voices heard during that consultation.

There is then a further stage in the process. Legislation has to be drafted and to find its way into a Finance Bill in 2015 (I say “a” Finance Bill as 2015 being an election year there will be more than one). That means there must be debate about the proposed powers in Parliament. I hope that there will be because what we are talking about here is the balance between the powers of the state and the rights of the citizen. It is about civil liberties. These are things I would hope MPs would be keen to debate.
I worry about this on two counts.

The first is that on reading the first day’s Finance Bill Committee proceedings this week my overriding impression was that there was far too much focus on making party political points about the economy and the tax system and far too little focus on the technical detail. The technical detail of the proposed new HMRC powers will need careful, informed scrutiny and robust debate by our elected representatives.

The second is that these proposals need to be seen for what they are: new powers which – if they are to be introduced at all - must be balanced by very strong safeguards. Those safeguards must be in law, not in guidance. It would be too easy for politicians to take a superficial view that as the powers are aimed at those who do not keep their tax affairs in order HMRC must be granted them.

The debate needs to be about the core issue: the power of the state and the rights of the citizen. It will take place in 2015, the 800th anniversary of the signing of Magna Carta. Hopefully that will focus minds on the importance of taking only necessary powers and of respecting the rights of the citizen."

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Monday, 7 April 2014

Backlash Over HMRC's Proposed New Powers

Unsurprisingly the Budget announcement that HMRC will be granted new powers to take taxes owed from people's bank accounts, when multiple attempts to contact the laggardly taxpayers have failed, is facing a backlash.

MPs, banks, charities the world and his wife want robust safeguards over HMRC's powers to raid bank accounts.

For why?

There is a not unreasonable fear that errors will be made, and that HMRC might misuse its powers.

Andrew Tyrie, chairman of the Treasury select committee, said that MPs intended to hold further hearings into the new powers, which he said could set a worrying precedent.

He is quoted by the FT:

“It has concerned the committee.”

Many banks want judicial oversight to apply to the new powers, as they worry about being caught between irate customers and the tax authorities.

A source from one bank told the FT:

“HMRC doesn’t have the best record of getting things right.”

HMRC said in a statement that the new power was aimed at a minority “who simply dodge their obligations”.

The new measure would have appropriate safeguards and tackle those who could afford to pay, it added.

“These are people who have, on average, over £20,000 in their accounts but are refusing to pay their debts. This will only affect a tiny number of debtors whom we have contacted a minimum of four times to ask for payment.”

John Thurso MP is a tad cynical about the powers:

“Any advance of powers by the state needs to be resisted unless they can justify it.

The victims will be people with just enough money to go after but not enough to hire lawyers to fend it off.”

Patrick Stevens, director of tax policy at the Chartered Institute of Taxation, was also sceptical:

“There are lots of very unsophisticated people out there with more than £5,000 in a bank account. We are truly worried about the vulnerable.”

As is Robin Williamson, of the Low Incomes Tax Reform Group charity:

“As always the financially savvy ones will find ways around this. The ones that will be caught are the vulnerable.”

Basically people are afraid that HMRC will ride roughshod over those who have the least ability to defend themselves.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Wednesday, 16 January 2013

The Grim RIPA

As the power of HMRC grows, and the political pressure to bring in more tax revenue increases, so does HMRC's temptation to spy on taxpayers.

The Telegraph reports that an FOI request shows that HMRC officials made almost 14,400 authorised views of "communications data" on taxpayers during tax evasion investigations.

This compares to more than 11,500 such views in 2010, an increase of almost 25%.

HMRC uses the Regulation of Investigatory Powers Act 2000 (RIPA), the same act used by local councils to spy on their residents, to access details on what websites are viewed by taxpayers, where a mobile phone call was made or received and the date and time of emails, texts and phone calls.

From October 2011 to the end of September 2012, HMRC was given 172 authorisations for "directed surveillance", covert surveillance, mainly in public places.

HMRC won't tell the media how many times the surveillance has led to a successful prosecution for tax evasion, or whether those found to be innocent are told that they have been spied on.

HMRC have also refused to disclose how many times it had been given warrants to intercept and read peoples' private emails, or listen to their phone calls.

An HMRC spokesman said:

“Our use of these powers is subject to regular independent inspection, ensuring it is both proportionate and lawful."

The use of RIPA is not well regulated, as evidenced by the absurdly petty nature of RIPA surveillance carried out by local councils.

Power corrupts!

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Sunday, 2 December 2012

Power Corrupts

As per today's Telegraph:

"Judge Lewison was astonished when one HMRC employee admitted that he had no evidence that Abbey had been involved in fraud, but maintained that he had no proof that it was not involved in criminal activity -- which, as the judge pointed out, is not grounds in law for liquidating the company."

Wednesday, 2 November 2011

Power Corrupts

Accountancy Age reports a rather interesting story about HMRC arresting a tax advisor on the day he was due to give evidence in a capital gains tax tribunal, only for the charges to be dropped on the same day.

However, and here's the "rub", his briefcase containing his court papers for the day (where he was to act on behalf of a client) were seized; ie legally privileged information was taken and read by HMRC.

The arrest took place last year, but the facts are only now coming out.

Watkin Gittins of Montpelier Tax Consultants was representing Brian and Doreen Foulser in a dispute over holdover relief from capital gains tax. The courts found in principle that the couple was liable to pay tax on £27M worth of shares, which was sent to the first-tier tribunal to determine.

However, on the day of the tribunal hearing (27 September 2010), Gittins was arrested on suspicion of cheating HMRC and false accounting. He was also asked to hand over his briefcase and his premises were searched,.

He was released the same day without charge, and no charges have been brought against him since.

In January 2011, Gittins took the Central Criminal Court to the High Court for granting the warrants. The High Court found that the Central Criminal Court and HMRC had acted fairly.

The Foulser case was adjourned on 27 September and the appellants made an application to remove HMRC from the proceedings based on its "serious misbehaviour", which would have the effect of allowing their appeal.

The Foulsers said that HMRC had obtained sight of legally privileged and confidential material held by Gittins relevant to the hearing. They also claimed that HMRC had arrested Gittins for the purposes of: alerting the tribunal hearing to the arrest and detention; causing the postponement of the hearing; causing publicity to the arrest of Gittins and thus embarrassing the appellants; and "oppressively" placing pressure on them.

Judge Roger Berner dismissed the application to disbar HMRC. He decided that it did not have this power and another court would have to make the decision whether to allow HMRC to make representations.

A representative of Gittins said the procedural decision was going to be appealed so it would be inappropriate to comment further.

This is a case that will be one to watch.

Tax does have to be taxing.

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Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Tuesday, 17 May 2011

Trust

Anthony Thomas will takeover as President of the Chartered Institute of Taxation (CIOT) at today's AGM.

His inaugural speech will highlight the importance of trust between the public and HMRC.

CIOT quote him:

"A fair tax system requires respect on both sides.

HMRC are at risk of damaging the trust that has been built up over centuries between tax payers and tax collectors."

His speech will cover:

- The attitude of HMRC to the rule of law;
- The impact of ever-increasing HMRC powers;
- HMRC's operational performance in recent years

He is right, trust is essential both between HMRC and taxpayers and between the government and the voters in order for democracy to continue to function in this country.

Undermine that trust and you undermine the foundations of democracy.

Tax does have to be taxing.

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Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Thursday, 13 January 2011

Financial Power List 2011

My thanks to Accountancy Age for placing me (at 42) on their Financial Power List for 2011. I also appeared in the list in 2006.

The list identifies the top 50 who will wield the most influence over the future direction of accounting.

42 Ken Frost, scourge of HMRC
Known better as one of the ICAEW’s main agitators during its failed attempt to merge with CIPFA, Frost has more recently, and equally successfully, channeled his ire at the taxman. His blog, hmrcisshite.blogspot.com, has consistently come up with nuggets of information HMRC would rather not have been made public.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Tuesday, 29 June 2010

HMRC Knows Best II

The row over HMRC's new powers wrt withdrawing tax relief from any charity, if it feels that any of its senior employees or trustees is untrustworthy, is not abating.

Charity law firm Bates Wells & Braithwaite has stated that it will write to Liberty, asking it to back their campaign to have the law repealed.

Bates Wells & Braithwaite is of the view that the "fit and proper persons" test for charities, breaches the human rights of charity employees.

Rosamund McCarthy, partner at Bates Wells & Braithwaite, is quoted in the Third Sector as saying that the law could give HMRC the power to dismiss charity employees and trustees and bar them from working in the sector again, based on suspicion rather than proof of wrongdoing. It also gave those employees no right to appeal.

HMRC state that it assumed that all people appointed by charities were fit and proper persons, unless HMRC had other evidence.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Thursday, 27 May 2010

Power Corrupts - More Powers On The Way

The formation of a coalition government, one party of which is wedded to the idea of a moral crusade against tax avoidance, coupled with the fact that Britain is broke indicates that instead of cutting back on the powers granted by the last administration to HMRC there is a certainty that more powers will in fact be granted.

Accountancy Age quote Anne Redston, visiting professor at Kings College London:

"There are more powers on the way.

But we should really be putting a cap on powers for the next five years."

You have been warned.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Tuesday, 20 April 2010

Power Corrupts - Fit and Proper Test

It seems that our "respected" MPs have foisted another piece of bureaucratic tax legislation upon us that will do nothing to lessen fraud, but will do everything to increase the bureaucratic burden on legitimate charities and their trustees.

Third Sector reports that a new measure introduced in the Finance Act earlier this month, designed to ensure that tax relief is not given to bogus charities, is too loosely worded and gives HMRC too much power.

The legislation gives HMRC the power to carry out a 'fit and proper persons' test, every time a charity hires a new trustee or senior manager. If a trustee fails to pass the test, the charity can be denied tax relief.

Sam Macdonald, partner at law firm Farrer & Co, is quoted:

"Charities will never really know whether they are entitled to tax relief or not.

HMRC has said 'you'll have to trust us', but that's not a reassuring basis on which to continue."

Bill Lewis, tax consultant at Bates Wells & Braithwaite, said:

"HMRC should have consulted on the legislation before introducing it.

This is more unnecessary paperwork, and penalises only the innocent. The red tape this produces will have no effect on fraudsters, but it will cause trouble for law-abiding trustees."

Simon Weil, partner at Bircham Dyson Bell, said:

"This is dangerously subjective legislation. I think the sector needs to fight for its independence."

Poorly drafted legislation giving more powers to an unelected bureaucracy is a dangerous combination.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Friday, 25 September 2009

Power Corrupts - Hartnett's Global Ambitions

Business IFC reports that Dave Hartnett has aspirations for powers for national tax authorities to access data directly on their taxpayers' assets in other jurisdictions.

"I see automatic exchange of information as the benchmark. That is the position which I would like to reach as standard."

Doubtless the "if you are innocent, you have nothing to hide" retort will be used by some.

However, granting governments and their bureaucrats the right to such unlimited access to people's private lives gives these governments (and their bureaucrats) quite some considerable power over the individual.

Are we really able to trust these governments and their bureaucrats not to misuse this power?

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Monday, 13 July 2009

Power Corrupts - Specialist Information Powers

HMRC is asking for more powers to force accountants to reveal the names and addresses of clients who use schemes to avoid paying the 50% rate of income tax.

The "new specialist information powers" would enable HMRC to demand that accountants release the details of all individuals using such schemes, when the new rate comes into force in April next year.

Given that tax avoidance is legal, why does HMRC need to know who is avoiding tax?

Surely it only needs to know the nature of the schemes being used by accountants, in order to validate their legality?

Tax avoidance schemes have been around for yonks, why now does HMRC feel the need to increase its snooping powers?

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Friday, 10 July 2009

Consultation

FYI, from the HMRC site:

Two consultation documents on modernising HM Revenue & Customs (HMRC) powers, deterrents and safeguards are published today.

The first paper contains proposals for modernising and improving HMRC's information powers, and accompanying safeguards, in two key areas:

- bulk information powers – these allow HMRC to gather specific pieces of information about a group of taxpayers for use in risk analysis e.g. interest paid by banks without deducting tax; and

- specialist unnamed taxpayer powers – these allow HMRC, in certain tightly-described circumstances, to ask for information from a third party about an unnamed taxpayer, for example, to check a transaction where it’s not clear who the relevant taxpayer is.

The second consultation looks at ideas for a new and modernised excise checking framework, as well as ways of improving excise administrative procedures, in order to reduce admin burdens for business. The proposals cover excise duties on alcohol, tobacco, energy products, gambling duties and air passenger duty.

The consultations follow the introduction in April 2009 of a new compliance checking framework for a range of taxes, which brought in a new set of rules and safeguards for HMRC inspections, visits and enquiries across a range of taxes.

The consultation documents, and accompanying Impact Assessments, are available on the HMRC website at www.hmrc.gov.uk/consultations (click the "current consultations" option).

The deadline for submitting comments is 1 October 2009.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"