More AML: data collection and enablers

Thank you to the vast majority of firms who responded to our recent AML data collection exercise, which is mandatory under new Government regulations.

The data shows these regulations apply to around two thirds of firms we regulate. We have now sent the relevant information to HMRC for its register of trust and company service providers. We are also working through the Disclosure Barring Service (DBS) checks. If we have any issues with checks involving your firm, we will be in touch.

We are also following up with the small number of firms who did not respond. You might find useful the guidance HMRC has recently issued 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 would also expect those working in this area to be familiar with.

Go to the warning notice

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