HMRC extends discussion on 'deliberate wrongdoing' draft law

Date: 19th February 2010

HM Revenue & Customs' (HMRC) new draft law on "deliberate wrongdoing" is to be consulted for a longer period of time amid concerns surrounding the wording of the law.

The department informed the Chartered Institute of Taxation (CIOT) that the draft will now be discussed until April 28th.

It follows the CIOT voicing concerns that the wording of the law means it could be seen to apply to anyone giving out tax advice which results in a loss to the treasury, rather than applying just to those who take part in illegal activities.

The CIOT argued that the law could then apply to someone who suggests an ISA as a savings account or newspaper publishing tax tips.

CIOT president Andrew Hubbard said: "We fully support HMRC having a power to deal effectively with the very small number of agents who are involved in what amounts to fraud in relation to a client's tax liabilities, but the legislation as drafted went far wider than this.

"In our opinion, it would have been unworkable and would have created a very damaging rift between HMRC and tax advisers."