Chartered Accountants involved with UK tax matters will be aware that the 2009 Finance Act 2009 authorises HMRC to publish the details of taxpayers where it is established that they have committed certain serious tax offences. HMRC have confirmed that the provisions of S94 will apply for tax periods starting on or after 1 April 2010 and for offences which are committed on or after this date.
Publication will apply in instances where individuals and companies have been penalised for deliberate tax defaults and certain VAT and Excise wrongdoings and where the tax lost exceeds £25,000. Names will not be published of those who make a full disclosure whether unprompted or prompted.
The £25,000 limit relates to the tax on which the deliberate penalty is calculated and can cover more than one year, tax or default (but nothing before 1 April 2010).
Publication is likely to occur quarterly and the details to be published will be the minimum necessary to correctly identify the person and the default. In exceptional circumstances (e.g. ongoing criminal investigations or risk to personal security) HMRC will not publish the default even if the criteria for publication are met. In reaching the decision as to whether to publish or not representations made by the taxpayer will be taken into account.
In terms of safeguards, HMRC have indicated the following:
- All the penalty decisions which underpin the scheme are appealable to an independent tribunal.
- No publication is possible until all appeal opportunities are concluded or expired.
- The taxpayer must be notified in advance and given reasonable opportunity to make representations.
- Taxpayers should receive a copy of the details which HMRC intends to publish.
- There are strict time limits: HMRC must publish within 12 months of the penalty becoming final and remove material 12 months thereafter.
The full text of S94 can be accessed here and previous HMRC guidance on the provisions can be accessed here and here.