According to new tax rules, independent financial advisers and clients will no longer face jail if they choose not to help civil investigations, although the possibility of prosecution remains a possibility for the most serious cases.
The new report states that clients should appoint a professional adviser once proceedings begin to ensure the accuracy of information supplied to HM Revenue & Customs. Disclosures of irregularities uncovered by advisers should enclose the tax history with the nature of the irregularities and an explanation on how they came about.
It is believed that these new rules were designed to encourage people to use advisers and prevent ignorance from being used as an excuse for tax avoidance.
Our view
We disagree with the change. Financial Advisers should help with any investigations although we appreciate there is an element of needing unbiased representation.