Proposals targeting promoters of avoidance risk ‘eroding trust in the tax system’, says the ICAEW

The operation of the tax advice and compliance market in the UK could be adversely affected if the Government proceeds with its measures to tackle a small number of tax advisers who facilitate non-compliance according to the ICAEW.

In its response to the Government’s consultation on enhancing HMRC’s ability to tackle tax advisers facilitating non-compliance the Institute warned that its plans could increase costs for taxpayers and have an adverse impact on taxpayer compliance and act as a barrier to growth. 

The ICAEW is concerned that the proposed measures did not match the intended target outlined by Government. It believes that ‘the measures take the dishonest conduct rules for tax advisers as the starting point but these rules were created for a different reason and changing them would result in draconian provisions applying to behaviours that fall well short of dishonest conduct’. Any legislation should contain...