A recent report by the House of Lords Economic Affairs Committee warned that the increased powers given to HMRC to tackle tax avoidance and evasion are undermining the rule of law and justice, and has demanded a review of the oversight of HMRC and its powers.
The committee’s chair is quoted as saying “HMRC has been granted some broad, disproportionate powers without effective taxpayer safeguards. High penalties, designed to deter some taxpayers from continuing appeals against tax liabilities, are a tax on justice.”
Particular concern was expressed with regard to HMRC’s approach to the 2019 loan charge, brought in to combat disguised remuneration schemes, the charge for which can be applied retrospectively, and allows HMRC to go back as far as 20 years.
If you would like to discuss, or require assistance with tax issues, please call one of our tax teams on Rugby 01788 539000 or Leicester 0116 261 0061.