HMRC fails to fine offshore tax evasion enablers |
HMRC has failed to impose fines on any offshore tax evasion enablers in the past five years, despite being granted greater power to do so. New laws introduced in 2017 were expected to create a level playing field and allow HMRC to pursue accountants, lawyers, and bankers involved in offshore tax evasion. However, figures show that no fines have been issued under the enhanced powers. While HMRC last year said it had raised an additional £34bn through tackling tax avoidance, evasion and other noncompliance, the tax office has been criticised for failing to properly deploy new laws to crack down on avoidance. Michelle Sloane, a tax disputes partner at law firm Reynolds Porter Chamberlain, said: "Enablers were and still are a big focus for HMRC. But these figures show their rhetoric on tackling enablers is clearly not being followed through with action." Dan Neidle, founder of the independent think-tank Tax Policy Associates, commented: "New HMRC powers are pointless if the powers aren't then used." The UK's tax gap - the difference between tax paid and owed - stood at £36bn in 2021/22 and both the Conservatives and Labour say they will look to boost Treasury coffers by cracking down on evasion.