Tax update April 2018
In this month’s update we report on HMRC’s new Code of Practice 8 guidance, the OECD’s consultation on misuse of residence and citizenship schemes to circumvent the common reporting standard.
We also comment on HMRC’s guidance on the new criminal offences relating to offshore activities introduced by Finance Act 2016 and three recent decisions relating to APNs and penalties.
News items
HMRC issues revised Code of Practice 8 (COP 8) guidance
On 23 February 2018, HMRC’s Fraud Investigation Service published a revised version of its COP 8 guidance. The guidance explains how the Fraud and Avoidance section of the Specialist Investigations directorate of HMRC carry out civil tax investigations where serious fraud is not suspected but investigation is considered necessary.
OECD consults on misuse of residence schemes to circumvent the common reporting standard (CRS)
On 19 February 2018, the OECD published a consultation document relating to the misuse of residence and citizenship by investment schemes to circumvent the CRS.
HMRC issues guidance on new criminal offences relating to offshore income
On 16 March 2018, HMRC published guidance on the three new criminal offences relating to offshore income, assets and activities, introduced by the Finance Act 2016.
Case Reports
Rowe and Vital Nut – Court of Appeal delivers its judgments in APN/PPN judicial review challenges
The below is based on an article first published in Tax Journal on 8 February 2018.
Cannon – tax barrister not careless in relying on advice received from his accountant
In Cannon v HMRC [2017] UKFTT 859 (TC), the First-tier Tribunal (FTT) has held that a tax barrister was not careless in relying on tax advice received from an accountant he retained to provide professional advice on specified issues.
Goldsmith – late filing penalties cancelled by the Tribunal
In David Goldsmith v HMRC [2018] UKFTT 0005 (TC), the FTT has cancelled late filing penalties issued to the taxpayer as the statutory requirements contained in section 8(1), Taxes Management Act 1970 (TMA), had not been satisfied and HMRC did not have the power to require the taxpayer to deliver self-assessment returns.