Clamping down on tax avoidance

As part of the Autumn budget 2021 announcements, the government are progression new measures to clamp down on promoters of tax avoidance schemes.

The measure is targeted at the most persistent and determined promoters and enablers of tax avoidance. The proposed legislative changes are designed to clamp down on the supply of tax avoidance arrangements.

The package consists of:

  • a new power for HMRC to seek freezing orders that would prevent promoters from dissipating or hiding their assets before paying the penalties that are charged as a result of them breaching their obligations under the anti-avoidance regimes
  • new rules that would enable HMRC to make a UK entity, which facilitates the promotion of tax avoidance by offshore promoters, subject to a significant additional penalty
  • a new power to enable HMRC to present winding-up petitions to the court for companies or partnerships operating against the public interest
  • new legislation that would enable HMRC to name promoters, details of the way they promote tax avoidance, and the schemes they promote, at the earliest possible stage,

For the full policy paper see:

PAYadvice.UK 28/10/2021

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