Posts tagged ‘Finance Act’

HMRC now have powers to name and shame individuals and companies who deliberately evade taxes, by publishing their names, address and details of their evasion on the HMRC website.

New Powers

The law that provides HMRC with the power to disclose is included at Section 94 of the Finance Act 2009.  This ruling can be used by HMRC for accounting periods starting 1 April 2010, it therefore may take a little time before anything ‘juicy’ is made public.

ShameDeminimus

To be named and shamed the evasion must be deemed to be deliberate and involve tax of £25,000.



Preventing the embarrassment

A full voluntary disclosure of tax wrong doings without undue delay may help avoid the detail being published.

My thoughts

Once again HMRC have been given more opportunity to burden taxpayers with the subjective views of individual inspectors.

  • deliberate
  • undue delay and
  • ‘full’ disclosure

are all terms that I consider could be misconstrued or misrepresented and this allows different cases to be dealt with in different ways dependant on the mood, attitude or experience of the inspector.

If you are exposed to this new HMRC power, defending your position by challenging the inspectors opinion of your guilt may well be expensive and stressful.


The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

The Finance Act 2010 introduced a new definition which Charities (and Community Amateur Sports Clubs) will need to adopt in order to ensure it remains entitled to tax relief.

Management Condition

The new definition introduces the term ‘management condition’ and states that managers must be deemed to be fit and proper persons to manage the charity.  The term manager is deemed to relate to any person who has day to day control over the running of the charity and any persons who can assert influence over its running.

Fit and Proper Declaration

An individual is considered ‘fit and proper’ if they ensure that charity funds and tax reliefs are used only for charitable purposes.  HMRC have advised that all managers should sign a declaration as to whether they are ‘fit and proper’ they suggest a person declares the following:

  1. I am not disqualified from acting as a charity trustee
  2. I have not been convicted of an offence involving deception or dishonesty
  3. I have not been involved in tax fraud
  4. I am not an undischarged bankrupt
  5. I have not made compositions or arrangements with my creditors from which I have not been discharged
  6. I have not been removed from serving as a charity trustee or been stopped from acting in a management position within a charity
  7. I have not been disqualified from serving as a Company Director
  8. I will at all times ensure the charity’s funds and charity tax reliefs received by this organisation are used only for charitable purposes

More paperwork….

For most people this will not be too onerous a declaration and will only be a question of form filling to ensure you have the paperwork in place should it ever be requested. Another example of red tape that could prevent your charitable status from being challenged, which could have catastrophic tax consequences.

 

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.