Tax Agents and Dishonest Conduct
Readers are reminded that new legislation is due to come into effect from 1 April 2013 that will enable HMRC to address dishonest conduct by tax agents, and issue civil penalties of up to £50,000. It will apply to dishonest conduct on or after 1 April 2013.
The new legislation will allow HMRC to:
- investigate dishonest conduct by tax agents;
- charge civil penalties where there has been dishonest conduct and a person fails to supply information or documents HMRC has requested; and
- in certain cases, publish the details of agents who are penalised.
While recognising that tax agents play a vital role in helping taxpayers to comply with their tax obligations, HMRC claim a need for effective legislation to allow them to properly review and penalise dishonest tax agents to create a fair business environment.
The legislation is intended to be used in serious cases only as an alternative to criminal prosecution.
There have been a number of consultations during the development of this legislation to which Chartered Accountants Ireland has contributed. The final version of the legislation contains appropriate safeguards including tribunal approval for information requests and appeal rights.
Detailed guidance is currently being developed in conjunction with the Professional Bodies and will be published on the HMRC website before April 2013.