Members of the UK200Group of independent chartered accountancy and lawyer firms have today commented on HMRC investigation into hundreds of UK accountants, lawyers and professional advisers suspected of concealing assets in offshore tax havens for wealthy clients, following the largest leak of offshore data ever received by the UK authority.HMRC said early analysis of the data, totalling 400 gigabytes, showed extensive use of complex offshore structures to conceal assets around the world, including Singapore, the British Virgin Islands, the Cayman Islands and the Cook Islands. So far HMRC has identified more than 100 individuals benefiting from these structures, a number of whom are already under investigation for offshore tax evasion. More than 200 UK accountants, lawyers and other advisors will also be scrutinised. David Whiscombe, Director of Tax at UK200Group member firm Berg Kaprow Lewis

“Look, we’ve got to be honest, this witch-hunt business is becoming a bit of a bore.  We think we’re ALL agreed that using any structure – whether onshore or offshore – to evade tax is wrong. Period. End of. No question. 

“But please, quit finger-pointing-in-a-rough-direction. And we’re not saying it because they seem to be turning the heat up on accountants and tax advisers – there are definitely rogues out there who dabble, or just generally hang out on the dark side of the line.“What’s interesting (or worrying – depending how you look at it) is that in the UK, any person or business can call themselves an “accountant” or “tax adviser” regardless of knowledge or qualifications (or lack of).  That’s not to mention the “qualifieds” who turn to the dark side anyway….them’s the ones wot give the professional profession that we are a bad name, and we wish HMRC all the luck in the world to root them out. But it really isn’t fair to tarnish the good reputation of an entire profession on the back of a few ne’er-do-well’s.”

Cormac Marum, former inspector of taxes and head of tax advisory at UK200Group member firm Harwood Hutton

“Every right minded individual in this country should be right behind HMRC in supporting the attack on tax evasion, whether onshore or offshore. Those who evade tax are common criminals and the full weight of the law should be brought to bear on them.

“As Jennie Grainger at HMRC quite rightly notes having an offshore structure, however complex, may be perfectly legitimate provided all income and gains have been declared to HMRC. It is also perfectly legitimate for accountants and tax advisers to give clients advice about such structures and arrangements. All decent advisers will abide by their professional ethical guidance and tell their clients that they need to disclose any income and gains fully to the taxman. No doubt some clients may ignore this advice. If an accountant or tax adviser knows that their client is deliberately submitting an incorrect return, they should cease to act.

“HMRC should divert more of their resources to investigating this type of data, where it is likely that some tax evasion may have occurred, rather than wasting their time in their witch hunt against tax avoidance. Why pursue those who have followed the letter of the law when the priority should be to investigate and catch potential criminals?

“I am pleased to see that the Guardian on-line has ditched the inaccuracy in the main story on the front page of the Guardian this morning. This development has got nothing to do with tax avoidance and so should not be linked with the UK steps to clamp down on avoidance ahead of the G8 summit in June. If the UK government doesn’t like how its tax laws are being applied, it should pull its finger out and change its tax law and stop bleating on about people following the existing tax law.”

David Ingall, past president, UK200Group

“It all sounds very serious until the caveat at the end that such arrangements might be entirely legal. This, one suspects, is part of a PR exercise by HMRC to soften up public opinion to an aggressive use of the GAAR. One cannot support those who cross the line into illegality but equally one cannot support the moving of that line by media manipulation.”

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Established in 1986, UK200Group is the leading mutual professional association in the UK with some 150 offices of quality-assured member accountancy and lawyer firms throughout the UK totalling over 550 partners, 150,000 business clients and global links in over 50 countries. UK200Group provide services and products that are designed to enhance the business performance of its members.  Telephone 01252 401050, email admin@uk200group.co.uk or visit www.uk200group.co.uk 

Disclaimer:

UK200Group is an association of separate and independently owned and managed accountancy firms and lawyer firms. UK200Group does not provide client services and it does not accept responsibility or liability for the acts or omissions of its members.  Likewise, the members of UK200Group are separate and independent legal entities, and as such each has no responsibility or liability for the acts or omissions of other members.

 

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