HMRC Target Electricians they suspect of Tax Fraud
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Electricians are the next targeted group to be offered a tax amnesty to declare unpaid taxes, following an announcement by HMRC, which is due to start in February 2012, aimed at bringing in revenues from tax avoidance and tax evasion. This tax evasion disclosure opportunity from the Inland Revenue (HMRC) will give those and other taxpayers the chance to deal with any tax evasion and tax avoidance issues potentially without the same intensity as a tax investigation. If taxpayers choose not to take part, their risk of a tax investigation increases significantly and some of these tax investigations will result in a tax prosecution.
With reference to our earlier article on 21 October 2011, “Online traders: the next tax amnesty”, HMRC have now announced an E-marketplace campaign which is expected to start in Spring of 2012, this will be targeted at those who are using e-marketplaces, such as E-bay, Gumtree and other online trading sites to buy and sell goods as a trade or business. HMRC have a computer software system which analyses trading transactions online which they are going to use to make targeted tax investigations.
Details
Under the Electricians Tax Safe Plan (ETSP), not only electricians, electrical fitters and associated trades who have income (from tax avoidance or tax evasion) which they have not yet told HM Revenue & Customs (HMRC) about, can take part in this plan – the same terms are offered to anyone who has undisclosed income, so long as are not already part of a tax investigation by HMRC. This latest campaign is set to start in February 2012, when the deadline for registration will be announced (usually 3 months after the start date) by which date you need to notify HMRC of your intention to disclose your tax irregularities. You will then have approximately a further 3 months to complete your tax investigation disclosure and submit this to HMRC with payment of the tax, interest and penalties. Like the Plumbers Tax Safe Plan (PTSP), most disclosers will be due to pay a low penalty of only 10%, others will pay a maximum of 20%, which is very attractive when compared to the normal maximum of 100%, in ordinary tax investigations.
Subsequent to receiving completed disclosures, HMRC advise that they will carry out targeted tax investigations aimed at those who have failed to come forward and make a full disclosure. They will also subject some of the disclosures that they feel are not necessarily complete by way of tax investigations. Those being targeted are expected to be those in the electrician trade. These tax investigations could result in substantial penalties or even criminal tax prosecution.
The benefits of taking part in the Electricians Tax safe Plan when making a full and complete disclosure of all tax irregularities are:
• A low penalty rate – (10 per cent for the majority of registrations, with a maximum rate of 20 per cent).
• A simple and straightforward way to put your tax affairs in order as an alternative to a full blown tax investigation.
• In some cases HMRC will only go back up to 5 years – instead of the maximum 20 years.
Please note late payment interest will also be due on any taxation duties unpaid.
Gilbert Tax can help you
For most people, the simple thought of having to deal with an Tax Investigation or disclosing tax evasion or tax fraud is so terrifying that they avoid the issue altogether and often find themselves in even greater tax investigation difficulties with higher bills than they need to. There is no need to let problems large or small with the HMRC escalate to the point where your quality of life and happiness suffer.
At Gilbert Tax, we have over eighty years experience in finding closure for clients dealing with Inland Revenue investigation and significant experience in dealing with tax amnesty schemes.
We are also skilled in negotiating with HMRC, relative to tax evasion, so as to avoid or limit financial penalties for the individuals or businesses who find themselves subject to a tax investigation having not taken part in this current scheme.
For a private discussion of your tax matters, please call Gilbert Tax on 0800 734 3333 or email us at
enquiries@gilberttax.co.uk.
HM Revenue & Customs (HMRC) announce tougher procedures for civil fraud tax investigations
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HMRC’s new Contractual Disclosure Facility (CDF) will be launched on 31 January 2012, and follows consultation with interested parties in the autumn.
Under the new facility, HMRC will contact a taxpayer, in writing, to inform them that they are suspected of serious tax fraud, and offer them the opportunity to enter into a contract to disclose that fraud. The taxpayer will need to respond to the offer to take part in the contractual disclosure facility within 60 days
If the offer to take part in the contractual disclosure facility is accepted HMRC will agree not to criminally investigate, removing the risk of prosecution by HMRC.
The tax investigation will then be carried out using civil powers, with a view to a civil settlement for tax, interest and a financial penalty.
Those who choose not to enter into the contractual disclosure facility will , according to HMRC, face a full tax investigation by HMRC – in some cases a criminal investigation with a view to prosecution.
Anyone who enters into the contractual disclosure facility but does not go on to admit and disclose fraud, will also face the possibility of a criminal tax investigation.
Taxpayers who are not under tax investigation, but who want to disclose that they have been party to tax fraud, may fill out a contractual disclosure facility form to voluntarily request that HMRC consider their suitability for a contractual disclosure facility arrangement. In these cases where an individual volunteers to take part in the contractual disclosure facility HMRC still retains the discretion to decide which cases are dealt with civilly, and which are investigated with a view to criminal prosecution.
Launching the Contractual Disclosure Facility, Exchequer Secretary to the Treasury, David Gauke, said:
“This new facility is a valuable tool which will help HMRC in its fight against fraud. HMRC will set out clearly what is expected of taxpayers, and what will happen to fraudsters who choose not to disclose their crimes.”
Gilbert Tax can help you
For most people, the simple thought of having to deal with an Tax Investigation or disclosing tax evasion or tax fraud is so terrifying that they avoid the issue altogether and often find themselves in even greater tax investigation difficulties with higher bills than they need to. There is no need to let problems large or small with the HMRC escalate to the point where your quality of life and happiness suffer.
At Gilbert Tax, we have over eighty years experience in finding closure for clients dealing with Inland Revenue investigation and significant experience in dealing with tax amnesty schemes.
We are also skilled in negotiating with HMRC, relative to tax evasion, so as to avoid or limit financial penalties for the individuals or businesses who find themselves subject to a tax investigation having not taken part in this current scheme.
For a private discussion of your tax matters, please call Gilbert Tax on 0800 734 3333 or email us at
enquiries@gilberttax.co.uk.
Civil Tax Fraud: Contractual Disclosure Facility: Changes from 1 February 2012.
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As detailed earlier the new tax investigation procedures called the contractual disclosure facility are introduced on 1 February 2012 and replace the civil investigation of fraud procedures. The contractual disclosure facility will still be a tax investigation where HMRC suspect serious tax fraud and code of practice 9 (the HMRC document on what to expect in a tax investigation with suspected serious tax fraud) will still be issued.
The main difference between the old civil investigation of fraud procedures and the new contractual disclosure facility are as follows:
Under the civil investigation of fraud procedures you did not have to sign up to a contract that you were going to disclose the tax fraud in order to gain immunity from prosecution for tax fraud or tax evasion. In the contractual disclosure facility you have to make a disclosure of the tax fraud in outline and you have to sign a written document to agree that you will actively assist with the tax investigation of the tax fraud.
Under the civil investigation of fraud procedures if a partial disclosure of a major tax fraud was not made initially but was then disclosed to HMRC at a later date as part of the process there was no risk of prosecution as long as not signed documents had been provided. In the contractual disclosure facility if someone does not provide an outline of a major tax fraud in the initial statement then as only the tax fraud initially outlined to HMRC is guaranteed that there will be no prosecution for tax evasion then there is an increased risk that the person will be prosecuted under the contractual disclosure facility.
Unlike the civil investigation of fraud procedures the contractual disclosure facility has a time limit for people to partake of 60 days. If they do not sign up to taking part in the contractual disclosure facility within that 60 day period then it is treated as a denial and HMRC will launch their own tax investigation of the tax fraud without the protection of a guarantee of none prosecution for the tax fraud.
On the positive side the civil investigation of fraud procedures were very formulated and always had to include a long form report and tax history of the individual. This was costly in terms of fees. Although this will still be the main thrust of the contractual disclosure facility it has been said by HMRC that they are keen to agree a more flexible and streamlined process which should keep the length and costs of the tax investigation for the contractual disclosure facility lower than they were under the civil investigation of fraud procedures.
HMRC have brought in these changes as they want to beef up their tax investigations and make the contractual disclosure facility something which tax evaders take seriously.
Given the hardening of attitude by HMRC it is more important than ever that people who receive a letter from HMRC relating to the contractual disclosure facility contact a specialist tax investigation expert, who is used to defending clients accused of tax evasion and tax fraud and who knows the HMRC tax investigation processes.
Gilbert Tax can help you
For most people, the simple thought of having to deal with an Tax Investigation or disclosing tax evasion or tax fraud is so terrifying that they avoid the issue altogether and often find themselves in even greater tax investigation difficulties with higher bills than they need to.
There is no need to let problems large or small with HMRC escalate to the point where your quality of life and happiness suffer or in the worst case your liberty is in question.
At Gilbert Tax, we have over eighty years experience in finding closure for clients dealing with Inland Revenue investigation and significant experience in dealing with civil investigation of fraud tax investigations..
We have also taken part in the consultation relating to the contractual disclosure facility and have a reasonable working knowledge of the procedures.
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We are skilled in negotiating with HMRC, relative to tax evasion and tax fraud, so as to avoid or limit financial penalties for the individuals or businesses who find themselves subject to a tax investigation.
For a private discussion of your tax matters, please call Gilbert Tax on 0800 734 3333 or email us at
enquiries@gilberttax.co.uk.
To find out more visit www.gilberttax.co.uk
