Online Tax Rebate v HMRC

In Online Tax Rebate v HMRC [2019] UKUT 167 (24 May 2019) the UT found that a company which assisted employees in obtaining tax reliefs from HMRC was a tax adviser for the purpose of the Money Laundering Regulations 2007 (implementing Directive 2005/60/EC).

Online Tax Rebate (OTR) contacted employees who may be entitled to unclaimed tax relief. It then issued claims for relief via its online system which employees sent to HMRC on the understanding that a proportion of any tax refund would be paid to OTR.

HMRC considered that OTR was a tax adviser for the purpose of the Money Laundering Regulations 2007 and that it had failed to comply with the requirements imposed by the regulations to verify its customers’ identity. Although HMRC accepted that the company’s business gave rise to a low risk of money laundering or terrorist financing a £14 641 penalty was imposed.

The...

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