Accountants targeted in tax crackdown
Accountants who help tax evaders use offshore accounts are to be fined and publicly named under tough new sanctions which have come into effect from January 1st. Any individual or corporation who deliberately aids the evasion of tax will face fines of up to 100% of the amount they helped evade, at a minimum of £3,000. While tax evasion has always been illegal, the law will mean HMRC can charge civil penalties on those providing planning, advice and other professional services, or who have physically moved funds offshore to evade tax. Jane Ellison, financial secretary to the Treasury, said: “Tax evasion is a crime and as a government we have led reform of the international tax system to root it out. Closer to home we are creating a tax system where taxes are fair, competitive and paid. The raft of measures we have introduced to tackle avoidance and evasion will create a level playing field for the vast majority of people and businesses who play fair and pay up.”
Business rates appeals may be blocked
The Telegraph reports that companies are facing a business rates ‘black hole’ of up to £6bn, after it emerged the government plans to reform the business rates appeals process at the same time as it increases rates. Ministers reportedly want the power to throw out any business rates appeal if it is within a margin of error of up to 15%, meaning a firm could potentially be blocked from appealing even if it can prove it is being charged too much tax. Meanwhile, the Telegraph’s Jeremy Warner warns that a “significant number” of businesses will be ruined when changes to the business rates system take effect next April. He says that some will be hit with an immediate increase in the tax on their properties of 42%, with still worse to come in future years. He urges the government to reconsider its plans, arguing that Brexit means the UK must position itself as “one of the most business friendly places on the planet.” To meet this ambition requires a low tax, deregulatory agenda of “truly revolutionary intent”, says Mr Warner.