Giving friends tax advice gets you a £5,000 fine: Big Brother law threatens innocent advice

By: James Slack and Becky Barrow, 5th May 2010

Anybody who advises a friend to take out an Isa or gives them a similar tax-saving tip risks a £5,000 fine, experts warned yesterday.

They attacked proposed 'Big Brother' powers for HM Revenue and Customs which could ensnare those simply trying to help a friend,
relative or colleague to cut their tax bill.

Innocent victims could include a person who mentions to a friend in the pub that an Isa is a way of saving £10,200 a year tax-free.


Anybody who advises a friend to take out an Isa or gives them a similar tax-saving tip risks a £5,000 fine, experts are warning.


Even a vicar who encourages the congregation to donate money using the Gift Aid envelopes, rather than putting cash straight into the Sunday collection, may fall into the trap.

Charities could also be hit by the draconian new 'tax avoidance' law, experts claim.

It will make it an offence to hold any conversation - even in private, with friends - if it offers clues on how to pay less tax.

Professor Anne Redston, a tax and legal expert from King's College, London, described the proposed legislation as 'dangerous, disproportionate and an erosion of fundamental freedoms'.

She warned: 'It effectively criminalises the provision of ordinary advice on taxation by the man in the street.'

The Chartered Institute of Taxation called for the draft Bill containing the powers to be 'torn up'.

Tax policy director John Whiting said the rules are 'patently absurd' and must be rewritten - or risk turning people who are trying to
help into criminals.

The proposed rules are contained in the Tax Agents: Deliberate Wrongdoing draft Bill, which is trying to crack down on any 'tax agent' whose advice leads to a 'loss of tax' for HMRC.

It is the definition of a 'tax agent' which is fuelling much of the controversy as
it includes anybody who gives tax advice 'free of charge' and 'otherwise than in the course of business'.

This means it is not just tax professionals, such as accountants and financial advisers, but anybody who suggests ways of cutting a tax bill, even though they are completely legal.

Tax evaders such as multi-millionaires who do not pay a penny in income tax are targeted, but so is anybody who tries to make use of legal tax-saving tips.

The consequences for offering well-meaning advice such as pointing out that saving into a pension attracts tax relief could be extremely expensive, with fines of up to £5,000.

Victims could also be forced to pay a fine worth 100 per cent of the 'lost revenue' that HMRC would have got if the advice had not been followed.

Mike Warburton, of accountants Grant Thornton, said: 'This is really draconian stuff. It is Big Brother.

'It means everybody will have to tread carefully before they talk to anybody on any financial matter.'

Experts accuse HMRC of trying to grab as much tax as possible to help fill the black hole in the nation's finances.

An HMRC spokesman said: 'The draft legislation is not intended to target anyone giving fair and honest tax advice. "Deliberate wrongdoing" means the same as "fraud" or "dishonesty".

'Providing advice to clients about how they might best order their affairs, including tax planning and tax avoidance, cannot trigger
the legislation in the absence of such fraud.'

Source: href="http://www.dailymail.co.uk/news/article-1271398/Big-brother-law-threatens-innocent-advice-Tax-chat-land-5-000-fine.html">http://www.dailymail.co.uk/

Views: 27

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Doc Vega posted photos
Tuesday
Sandy posted a discussion
Tuesday
Doc Vega commented on Burbia's blog post How much money makes anyone have a god complex?
"I seriously doubt Trump has a God complex as he is merely treying to save this country, but people…"
Tuesday
Sandy posted videos
Tuesday
Doc Vega posted photos
Monday
Doc Vega posted a blog post

Project Twinkle and an Incident at Holloman Air Force Base

    I didn’t think it would happen as soon as it did, but it did! I got the call and a black…See More
Monday
Less Prone posted a video

A teacher exposes the LGBT agenda coming into in elementary schools

At the Teens4Truth Conference at the Southwestern Baptist Theological Seminary, Nov.18, 2017. A teacher warns that parents have no idea how bad it is, and ev...
Sunday
Less Prone commented on Doc Vega's photo
Thumbnail

main-qimg-c0f46f334984bf2d4642651a38db08ca

"This is sick. What about learning something useful like, reading, mathematics, literature, science…"
Sunday
Burbia posted a blog post

How much money makes anyone have a god complex?

Trump makes a meme of himself as Jesus Christ. Soros says he fancied himself a sort of god.In 2004,…See More
Sunday
Sandy posted a photo
Saturday
Doc Vega posted a photo

main-qimg-c0f46f334984bf2d4642651a38db08ca

Hate children< then put them in a classroom where Lebians teach them how to use dildos, where…
Apr 24
Doc Vega commented on Doc Vega's blog post Why Was The TV Show “The Outer Limits” Such a Threat?
"Gordon thanks for your support."
Apr 23
Doc Vega posted a blog post

What If origins on Our Planet are Different Than we Think?

 For a long time now there has been a theory that would fit into both creationism and the simulated…See More
Apr 23
honeygirl posted a video

All Bases Erased, Air Defense Shattered ! Iranian Missiles Massacre U.S. FORCES | Douglas Macgregor

Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube.
Apr 23
Less Prone favorited Sandy's video
Apr 23
Less Prone favorited Doc Vega's blog post The Escape
Apr 23
Less Prone posted a photo

Same Package - Different Label

This way or that way, we get to the same place. It's time to take another road.
Apr 23
Less Prone favorited Sandy's video
Apr 23
agen Dadu is now a member of 12160 Social Network
Apr 23
Less Prone commented on tjdavis's photo
Thumbnail

TRIVIA OF THE DAY Kier means “Penis” in Persian

"Nomen est omen. A political dick destroying his own country."
Apr 23

© 2026   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted