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Moore Stephens says that this means one in 14 of the 60,000 APNs HMRC has so far issued has been in error.
- One in 14 APNs issued in error
- Concerns over resource available to HMRC Counter Avoidance Directorate
APNs were controversially first introduced in 2014. They were intended to combat what HMRC sees as ‘abusive’ tax avoidance and enables HMRC to request full upfront payment of disputed tax within 90 days, without the right of appeal.
Moore Stephens says that the number of APNs issued in error calls into question the level of resource available to HMRC’s Counter Avoidance Directorate – the team within the tax authority that investigates suspected tax avoidance and issues APNs.
HMRC has assured Ministers that the Directorate will have access to the resource it needs to resolve legacy tax avoidance cases.
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Judicial review proceedings have forced HMRC to withdraw APNs as it was found that the schemes were not subject to the Disclosure Of Tax Avoidance Schemes (DOTAS) regulations – non-DOTAS scheme members are not liable for APNs.
Use with care
Dominic Arnold, Head of Tax Investigations and Disputes at Moore Stephens, said: “HMRC risks falling into a ‘shoot first, ask questions later’ approach with APNs.
“APNs are HMRC’s weapons of mass destruction so they need to be used with care.
“Taxpayers receiving APNs shouldn’t automatically accept that they should have been issued or the amount demanded are accurate – HMRC’s track record in this area is not perfect. Getting expert advice is essential, as there are hundreds of thousands of pounds at stake in some cases.
“It’s critical that the Counter Avoidance Directorate gets the right number of staff with the right level of seniority and experience to keep errors to a minimum.”
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Susie Hughes © Shout99 2016
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