Government must go further in crackdown on overseas promoters of tax avoidance, says ATT
Responding to the government’s consultation on tackling promoters of tax avoidance, the Association of Taxation Technicians (ATT) has stressed the need for stronger international collaboration, improved bilateral agreements and more effective cross-border enforcement to deter the small but persistent group of promoters of tax avoidance schemes based outside the UK.
The ATT believe that it is right that the controlling minds behind tax avoidance schemes are appropriately held to account and support the introduction of additional powers to crack down on them. However, the deterrent effect of enhanced civil or criminal sanctions on offshore promoters selling schemes into the UK is likely to be minimal if they cannot be enforced.
Senga Prior, ATT President, said:
‘The ATT firmly believes there is no place in society for those who create, promote or sell tax avoidance schemes that breach either the letter or the spirit of the law. We support the government’s efforts to deter, disrupt and frustrate the activities of such promoters. However, it is vital that any new powers, sanctions or enforcement measures introduced are both proportionate and appropriately targeted.
‘We understand that most of the 20 to 30 promoters still actively marketing these schemes operate, at least in part, from offshore jurisdictions. This presents significant challenges in enforcing any new powers and highlights the need for international cooperation in addition to domestic legislation.
‘With around 85,000 tax advice firms supporting over 12 million taxpayers4, it is also crucial that any new obligations imposed by HMRC are clearly defined to avoid placing undue burdens on legitimate advisers who are simply doing their job.’