Named and Shamed? HMRC to Publish the Names of Deliberate Tax Defaulters
09/03/2010
New HMRC powers taking affect from 1 April 2010 have increased pressure on businesses and individuals to keep on top of their tax affairs, as from this date HMRC have the right to publish the details of taxpayers who have committed certain serious tax offences.
Those likely to be affected include individuals, businesses and companies who are penalised for deliberately understating tax due, or overstating claims or losses of more than £25,000 and taxpayers who deliberately commit certain VAT and excise wrongdoings, again leading to a loss of tax of more than £25,000.
The details published will fully identify the taxpayer and include for example their name and address, their trade, profession or sector and the amount of tax, interest and penalties involved. There is a right to appeal to an independent tribunal against all elements of the penalty which would determine whether names would be published and taxpayers will be informed prior to publication of their details to enable them to make representations to HMRC.
If a taxpayer is in the situation where they have understated their tax liabilities however, a full unprompted disclosure or a full prompted disclosure of the amounts understated will mean that their details are not published.
If you think you may have an issue which could fall within this legislation and would like advice about how to correct the error please contact us.