In the wake of coalition promises to clamp down on tax evasion HMRC has launched a new initiative targeting deliberate defaulters.
The program entitled Managing Deliberate Defaulters commenced earlier this year with an initial batch of 900 letters being issued to those taxpayers that HMRC view as posing the the highest risk.
HMRC state that the purpose of the MDD Programme is to:
- Deter known defaulters from continuing or returning to non-compliant behaviour
- Effect a permanent shift of behaviour patterns
- Deter potential deliberate defaulters
- Reassure the compliant population that HMRC does take action against those who don’t meet their obligations
Written notification
Deliberate defaulters will be notified when they are entered on to the MDD programme and told what obligations they have to meet.
These measures will include:-
- greater scrutiny of tax returns and/or supporting accounts.
- requests for supporting documents and information.
- stricter regulation and pursuit of outstanding taxes.
- strict deadlines for filing self assessment returns.
Affected taxpayers could find themselves subject to these provisions for 5 years.
Whilst in the programme defaulters will be closely monitored to ensure that all tax obligations are being fully met.
Compliance powers
Where any failures to meet and maintain those obligations arise or the defaulter presents a high risk to HMRC, compliance activity will be undertaken in accordance with HMRC’s inspection and information powers.
In essence, the MDD programme puts those who have been found to have deliberately evaded tax firmly under the microscope. Any communication received under this provision should be treated very seriously indeed. Specialist advice should be sought without delay.
If HMRC feel that tax continues to be evaded deliberately and that conduct is deemed serious enough then criminal proceedings will likely be instigated.
Contact Admiral Tax
Admiral Tax have vast experience of dealing with cases where serious tax evasion is suspected. If you receive a letter from the Managing Deliberate Defaulters team or have any concerns regarding tax evasion generally then please contact our office without delay.
We can be contacted 24/7 on 0845 519 2206 or via email – info@admiraltax.co.uk
