Avoid tax schemes, warns specialist
A NORTH West tax specialist has warned of a sea-change in Government attitudes to tax avoidance.
Paul Hyland, tax partner at Liverpool-headquartered Duncan Sheard Glass, believes the distinction between tax avoidance and tax evasion is being eroded as politicians seek to clampdown on complex schemes designed to minimise tax liabilities.
Mr Hyland, who has been a tax specialist for more than 25 years, said: “Involvement in such schemes has always invited an element of risk. However, it is apparent that we are witnessing a sea-change in Government and, consequently, HMRC attitudes to tax avoidance. This political and attitudinal change significantly increases those risks in our view.”
Mr Hyland said an increasing number of schemes are at risk of being challenged and it can take up to seven years for such cases to be resolved in the courts.
He added: “I have always felt that it is easy to underestimate the emotional toll these schemes can take. Seven years is a long time to worry about your finances. The outlook of such schemes is changing and so too is our attitude. I would now advise businesses and high-earners to avoid the schemes, rather than trying to avoid the tax.
“The difference between tax avoidance and tax evasion is eroding and people who have taken advantage of such schemes face not only having to repay the tax they avoided but also the interest on that tax penalty charges. If it’s something you’ve been doing for years, then that can be a hefty bill. HMRC will not be lenient and will expect payment sooner rather than later.”
Earlier this week one of the country’s leading tax experts told TheBusinessDesk.com that rather than politicians and the media vilifying companies like Starbucks for paying no corporation tax in the UK, the focus should be on their total economic contribution to the country.
Bill Dodwell, head of tax policy at Big Four firm Deloitte, who advises major corporates including Starbucks on tax matters, made headlines earlier this year when he defended the coffee chain when grilled by politicians in Parliament and James Naughtie on the BBC Radio 4 Today programme.
