Tax Avoidance

(asked on 20th November 2018) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 7 November 2018 to Questions 185525-8 on Tax Avoidance, what estimate he has made of the number of promoters and providers of disguised remuneration schemes he expects to be (a) pursued or investigated and (b) penalised or prosecuted by HMRC.


Answered by
Mel Stride Portrait
Mel Stride
Secretary of State for Work and Pensions
This question was answered on 28th November 2018

HMRC takes tackling promoters of avoidance schemes seriously, but does not currently categorise information in such a way as to identify disguised remuneration schemes specifically.

In recent years, HMRC has been investigating over 100 promoters and others involved in avoidance, including disguised remuneration arrangements. In the last year, HMRC has taken litigation action against 5 scheme promoters for failure to disclose under Disclosure of Tax Avoidance Schemes with others deciding to disclose to avoid litigation. Further cases will be litigated in the year ahead.

HMRC has used its powers under the Promoters of Tax Avoidance Schemes to challenge promoters and others. HMRC has also made three successful complaints to the Advertising Standards Authority about misleading advertising; two of which relate to disguised remuneration schemes.

HMRC will also consider criminal investigation and make referrals to prosecuting authorities, where appropriate. Since the formation of HMRC’s Fraud Investigation Service on 1 April 2016 more than 15 individuals have been convicted for offences relating to the promotion and operation of marketed tax avoidance schemes and sentenced to over 95 years custodial with an additional 4 years suspended sentences being ordered, additional matters are the subject of ongoing enquiries.

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