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: 24

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 blog posts
6 hours ago
Doc Vega favorited tjdavis's photo
yesterday
Doc Vega commented on tjdavis's photo
Thumbnail

Game Night

"Ha! Good one!"
yesterday
Doc Vega commented on FREEDOMROX's blog post MRNA VACCINES: Question
"Listen man I know where you're at but back in October of 2023 thru December of 2023 for months…"
yesterday
tjdavis posted a video

Architecton | Official Trailer HD | A24

SUBSCRIBE: http://bit.ly/A24subscribeWritten and directed by Victor Kossakovsky and starring Michele De Lucchi. ARCHITECTON – Coming Soon RELEASE DATE: Comin...
yesterday
tjdavis posted photos
yesterday
tjdavis posted a blog post
yesterday
Burbia posted a video

Europe Will Not Survive

The hubris.All things Archaix at www.archaix.com
yesterday
FREEDOMROX posted a video
Saturday
Burbia commented on tjdavis's blog post Track AIPAC
Saturday
rlionhearted_3 commented on Doc Vega's blog post Latest Details on Missile Exchanges Between Iran and Israel
"May get really ugly over there?"
Friday
Doc Vega posted a blog post

Latest Details on Missile Exchanges Between Iran and Israel

Latest information about the air attacks between Israel and Iran as the US moves another carrier…See More
Thursday
tjdavis favorited Less Prone's video
Thursday
tjdavis posted a blog post
Thursday
cheeki kea replied to cheeki kea's discussion Tartaria
"Some interesting information has come to light ( from the renaissance period ) which explains that…"
Thursday
Sandy posted a video
Thursday
John Miller replied to MAC's discussion BREAKING! UFO whistleblowers drop BOMBSHELL on D.C. | Redacted with Natali and Clayton Morris
"Yes, the whole whistleblower situation is getting more intense, especially with all these bombshell…"
Wednesday
Doc Vega posted a blog post

Silent and Blue

Thought I'd lost myself today The meaning seemed so far away Then you slowly faded into disarray I…See More
Wednesday
Burbia posted a video

Disturbing Videos That Left Me Needing Answers!

#disturbing #video #strange #scary #scaryvideos #strangevideos This is a compilation of the most disturbing videos on the intern...
Jun 17
Erica Woodward is now a member of 12160 Social Network
Jun 17

© 2025   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