New legislation aimed at tackling rogue tax agents and those pushing tax
avoidance schemes won't catch all of those it is aimed at, warns the Chartered
Institute of Taxation (CIOT).
Instead the measures could make it harder for some taxpayers to get the advice
they need to comply with tax laws, the Institute added.
The CIOT argues that the current proposals are not well targeted, imposing
potentially unworkable conditions on tax agents. Meanwhile, many of the 'bad
actors' who are the real target of these measures will be out of scope and able
to continue their abuse of the system, it adds.
The Institute says it is concerned that, without changes, the proposals will lead
many reputable advisers to withdraw from giving advice where the meaning of
complex tax legislation is unclear, or where the potential tax liability is
high.
Ellen Milner, CIOT Director of Public Policy, said:
'The government are right to be taking a robust approach to those who
continue to devise, promote or sell mass-marketed tax avoidance schemes.
There should be no place for such people and their schemes in the tax
services market.
'However, the current proposals are set to miss their target. According to
HMRC, the market for tax avoidance schemes is now dominated by about 20
operators. These people are not mainstream tax and accountancy professionals
and are largely based overseas. The legislation as drafted will struggle to
capture these people.'
Internet link: CIOT