Tackling disguised remuneration tax avoidance
Executive summary
- AAT wholeheartedly backs government proposals to tackle disguised remuneration tax avoidance. AAT also recognises the often difficult balance required between rightly tackling the promotion and use of these schemes, which deprive the Exchequer of funds for public services and the need not to disproportionately punish taxpayers who acted in good faith.
- AAT believes that introducing joint liability would likely concentrate the minds of many promoters. While joint liability introduces an element of currently absent fairness in reflecting the reality of tax advice arrangements, it would also help to deter promoters who currently face very limited liability for their inappropriate, unethical and ordinarily illegal actions.
- AAT welcomes the consultation document reference to working more closely with the Advertising Standards Authority.
- As AAT has made clear, the best means of protecting consumers is to compel anyone giving paid for tax advice or accountancy services to be a member of a relevant, recognised professional body.
Related consultation responses
Tougher consequences for promoters of tax avoidance
AAT welcomes more information on how often HMRC plans to use its criminal investigation powers and what resources are available to fund it.
HMRC Performance 2020-2021: Public Accounts Committee inquiry
We recognise HMRC's good work in relation to avoidance and evasion but much more could be done. We also believe HMRC must do more in relation to debt recovery.
Autumn Budget and spending review 2021
Our response includes comments on tax after Covid, the national living wage, personal tax, pensions and savings, Corporation Tax, and business rates.
Raising standards in tax advice: protecting customers claiming tax repayments
We support some of the proposals, but requiring professional body membership for anyone providing paid-for tax and accountancy services would be more effective.
