HMRC is investigating 153 suspected enablers of tax evasion, including unregulated tax advisers, reports law firm RPC.
RPC highlights the importance for advisers of carrying out proper risk-assessment checks on clients to make sure they are not caught by the enablers provisions where they are unaware of their clients’ involvement in criminal activity. RPC notes that professionals ‘cannot rely on traditional financial crime controls and must continue to monitor and refresh their risk assessments on a regular basis’.
Adam Craggs, head of tax disputes and partner at RPC, commented: ‘HMRC is determined to clamp down hard on anyone who aids in tax crimes, not just the perpetrator themselves. The Revenue has been effective in identifying traditional tax evasion, with the result that would-be evaders are becoming more sophisticated and are increasingly turning to third parties to assist them’.
Michelle Sloane, partner at RPC, noted that HMRC is targeting a wide range of enablers: ‘This includes software developers and even those who operate storage facilities that could be used to hide high-value goods. If you are in any way assisting clients evade tax, HMRC may use its criminal powers against you’.
With more resources allocated to HMRC’s Fraud investigation service, RPC suggests that the number of investigations into tax fraud enablers is likely to increase.
HMRC is investigating 153 suspected enablers of tax evasion, including unregulated tax advisers, reports law firm RPC.
RPC highlights the importance for advisers of carrying out proper risk-assessment checks on clients to make sure they are not caught by the enablers provisions where they are unaware of their clients’ involvement in criminal activity. RPC notes that professionals ‘cannot rely on traditional financial crime controls and must continue to monitor and refresh their risk assessments on a regular basis’.
Adam Craggs, head of tax disputes and partner at RPC, commented: ‘HMRC is determined to clamp down hard on anyone who aids in tax crimes, not just the perpetrator themselves. The Revenue has been effective in identifying traditional tax evasion, with the result that would-be evaders are becoming more sophisticated and are increasingly turning to third parties to assist them’.
Michelle Sloane, partner at RPC, noted that HMRC is targeting a wide range of enablers: ‘This includes software developers and even those who operate storage facilities that could be used to hide high-value goods. If you are in any way assisting clients evade tax, HMRC may use its criminal powers against you’.
With more resources allocated to HMRC’s Fraud investigation service, RPC suggests that the number of investigations into tax fraud enablers is likely to increase.
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