Tax & Accounting News

HMRC to take softer line on tax avoidance

31/08/2010

HM Revenue and Customs (HMRC) is set to adopt a less aggressive approach when dealing with potential cases of tax avoidance in future.

In a recent interview with the Financial Times, HMRC permanent secretary for tax Dave Hartnett said that there had been times in the past where officials had been ‘too tough’ and taken a line that was ‘too black and white’ when it came to disputes.

It is hoped that, by seeking to reach agreement before matters get to court, HMRC will be able to reduce the growing logjam of cases awaiting resolution, bringing in cash for the taxpayer more quickly and saving on the billions currently used to fight court battles.

Despite this, Hartnett added that HMRC would continue to ‘fight to the death’ where it has a strong case, and said the department would not return to the practice of offering ‘package deals’ to multiple tax evaders, which were blamed for encouraging tax avoidance in the 1990s.

We will keep our clients informed with any further developments.