HM Revenue & Customs (HMRC) regards tax avoidance as a substantial threat to the Exchequer, while admitting that it is impossible to provide a comprehensive definition of avoidance.
Tax evasion is illegal practice while tax avoidance makes use of existing rules to mitigate tax. However, HMRC differentiates between ordinary, sensible tax planning and what it describes as artificial avoidance schemes, which it actively challenges, and has issued guidance on indicators that it sees as suggesting that a scheme may involve tax avoidance and which it is likely to investigate.
Such challenges will seek to ensure full payment of any tax due and may extend to action in the courts.
If you are seeking clarification on whether HMRC would categorise a tax scheme in which you are involved, or are considering pursuing, as tax avoidance, or require advice if HMRC contacts you concerning a tax avoidance inquiry, we can provide the expert help you require and seek to bring any investigation to a speedy and cost-effective conclusion.
To find out more about our tax investigation services in Edgbaston, Birmingham please contact Taxation-Investigation.