A practical guide on the powers of HMRC

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A practical guide on the powers of HMRC
Presentation by Sue Bradshaw Date 3 September
2009 The Paper Trail
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Sue BradshawBTG-Tax

• Former Senior Tax Investigator in HMRC 25 years
• Headed HMRC Specialist Investigations Civil Fraud
  Investigators in London
• Board of HMRC National Offshore Project team
• 7 years in private practice assisting individuals
  and companies with taxation matters

Tel no _44 (0) 207 024 8374 Mobile _44 (0)
7765 095459 E-mail sue.bradshaw_at_btg-tax.com
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Sue BradshawBTG-Tax

• HMRC information powers new rules
• HMRC penalties new rules
• Risk assessment etc.
• UK compliance activity in the offshore arena
• New Disclosure Opportunity and Liechtenstein
  Disclosure Facility

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Sue BradshawBTG-Tax

• New Powers and Penalties
• Overhaul of HMRC Powers and Penalties
• Brings together Inland Revenue and Customs
• Behaviour based legislation
• Information and Inspection powers

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Sue BradshawBTG-Tax

• New Powers From 1 April 2009
• HMRC have new powers to
• gather information and examine documents
• Inspect business premises and business assets and
  business documents on those premises
• check records before filing
• But
• Info/docs must reasonably be required to check a
  persons tax position
• Still some restrictions for some types of highly
  confidential information
• Safeguards to ensure HMRC act reasonably

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Sue BradshawBTG-Tax

• New Penalties- from 1 April 2009
• Return periods on/after 1 April 2008 and due to
  be filed on/after 1 April 2009
• Submission of incorrect document
• All taxes
• Now applies to Understatements and Inflated
  losses
• No penalty for mistake
• Fixed band penalties related to behaviour

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Sue BradshawBTG-Tax
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Sue BradshawBTG-Tax
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Sue BradshawBTG-Tax

• HMRCs Compliance Activity New procedures
• Disclosure of Tax Avoidance Schemes
• Litigation and Settlement Strategy
• Risk Assessment for Large Corporates
• Personal Tax Accountability of Senior Accounting
  Officer
• Publishing the names of deliberate tax defaulters

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Sue BradshawBTG-Tax

• HMRCs Compliance Activity - Offshore
• Amnesty
• - 2007 Offshore Disclosure Facility
• Offshore Bank Data - information notices to 308
  banks very recently
• Amnesty- New disclosure opportunity 1
  September 2009 to 12 March 2010
• - Liechtenstein Disclosure Facility 1
  September 2009 to 31 March 2010
• Cross Border Cooperation G20, various Exchange
  agreements- Bermuda - Jersey - Anguilla
• - Isle of Man - Guernsey - Turks and Caicos
• - Gibraltar - BVI - Liechtenstein

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Sue BradshawBTG Tax

• Summary
• New powers and penalties
• Document retention
• Guidance/plan for Inspections
• Manage information/inspection notices
• Voluntary disclosure will reduce penalties
• Risk assessment/SAO certificate
• Ensure systems and processes are robust
• Overseas accounts/companies/assets
• properly managed and disclosed
• Use NDO/LDF if appropriate to gain beneficial
  settlement

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Sue BradshawBTG-Tax

• Questions.