Tax avoidance

Margaret Hodge MP is calling for professionals who design, promote or advise on tax avoidance schemes to face the same criminal sanctions as their clients if they are found to have broken the rules. The Public Accounts Committee Chair said it made no sense that while clients are forced to pay back tax and face fines or even jail, tax lawyers, accountants and advisers can cash in their fees before offering the same advice to other customers. At present, HMRC can prosecute tax advisers if they try to hide schemes, but has no sanction against those who create and sell artificial trading arrangements designed solely to avoid taxes. Ms Hodge said the fact that Britain"s tax system was "ridiculously complex" was no excuse for exploiting its loopholes say Harris & Co accountants Northampton