More work, more paper and more penalties. Are you ready?

System

A latest news item on Taxwire from AccountingWeb reports on yet more responsibility being placed on the shoulders of an already hard-pressed profession. <BR><BR>From 1 August, companies, accountants and lawyers will have to <BR>disclose any new tax planning schemes set up since Budget Day <BR>within five days of their provision or face being fined up to <BR>£5,000. More penalties of up to £600 a day can be imposed for any further failure to comply. <BR><BR>Draft rules have been issued for a ridiculously short <BR>consultation period, which will effectively require advisers to <BR>swamp the Revenue with notifications of tax schemes. <BR><BR>Careful reading of the draft rules is essential as there are <BR>grey areas on what goes beyond just being an idea and what <BR>requires disclosure. Speakers at tax conferences and advisers <BR>having general discussions with clients will need to watch <BR>their words! <BR><BR>Whether this is a better alternative to a General <BR>Anti-Avoidance Rule remains to be seen. But it is a further <BR>level of compliance placed on an already burdened profession <BR>that is still coming to terms with the new money laundering <BR>reporting requirements. <BR><BR>It won't be easy for the Revenue either. It will have its work <BR>cut out in dealing with the flow of disclosures coming its way <BR>over the summer. In the light of intended staff cuts through <BR>the planned merger with Customs, the department faces serious <BR>resource issues. <BR><BR>