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Penalties for tax evasion enablers

HMRC has issued new guidance on penalties for enablers of defeated tax avoidance

The guidance provides further advice on Clause 65 and Schedule 16 Finance (No. 2) Act 2017.The legislation and the guidance have particular importance for solicitors and firms involved with the provision of tax advice.

The legislation provides HMRC with the ability to tackle many wide-ranging aspects of tax avoidance, and in particular “enablers”.An enabler is any person who is responsible to any extent for the design, marketing or facilitation of another person to enter into abusive tax arrangements.

If the tax arrangements are defeated in court or tribunal, or are counteracted, anyone who enabled the arrangements could face a penalty.The enablers provisions apply to abusive tax arrangements entered into on, or after 16 November 2017.

We issued a warning notice on tax advice and avoidance in September last year which we expect those working in this area to be familiar with.

Go to the warning notice