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: 26

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

tjdavis posted a video

FLUORIDEGATE: An American Tragedy. a film by Dr. David Kennedy

FLUORIDEGATE: An American Tragedy, is a feature documentary that reveals the tragedy of how government, industry and trade associations protect and promote a...
7 hours ago
Doc Vega posted a blog post

Rendezvous With The Unknown

Rendezvous With the Unknown Chapter I It was about 9:00 am when I received a text on my phone from…See More
12 hours ago
cheeki kea replied to cheeki kea's discussion Tartaria
"ah ha - a Tartarian cuisine component lurks inside good old Tartar Sauce. Who would have thought.…"
18 hours ago
tjdavis posted a blog post
yesterday
Doc Vega posted a blog post

Shadows in the Wind

If you think that life is but a game you can winYou’re just a shadow in the windConveniently…See More
yesterday
Doc Vega posted a blog post
Thursday
tjdavis posted a photo
Thursday
james will is now a member of 12160 Social Network
Thursday
Burbia replied to cheeki kea's discussion Tartaria
Thursday
Burbia posted a video

Mossad: we create a pretend world, we are a global production company... the world is our stage

60 Minutes interviews alleged Mossad agent"we create a pretend world, we are a global production company......the world is our stage."_______________________...
Thursday
Doc Vega posted a blog post

The Alvin II Encounter: Was There A Living Dinosaur Involved?

The year is 1965 in the Caribbean islands at a 5-thousand-foot depth in the dark Atlantic waters.…See More
Tuesday
Doc Vega posted blog posts
Monday
rlionhearted_3 posted photos
Monday
Burbia posted a video

All In The Family | Mike Meets Archie For The First Time | The Norman Lear Effect

Gloria (Sally Struthers) has a new boyfriend called Michael (Rob Reiner) and she is very excited to introduce him to her parents (Carroll O'Connor and Jean S...
Monday
Shawn H is now a member of 12160 Social Network
Monday
Doc Vega posted a photo

entitlement

Congress makes Social Security that we paid in our whole lives into to some government giveaway and…
Dec 14
Doc Vega posted a blog post

Death Threats for Assisting ICE?

An Idaho Bar Helped ICE And Faced This Sick Backlash From DemocratsDecember 10, 20254 minute read…See More
Dec 14
tjdavis posted videos
Dec 14
Sandy posted a video

'They’re Waiting for Us to Die': Area 51 Veterans Plead for Trump’s Help | Elizabeth Vargas Reports

Congress quietly killed the one fix that could have helped America’s “Area 51 veterans” prove where they served — and get the care they say they’ve earned.WA...
Dec 13
tjdavis posted a blog post
Dec 13

© 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