News Release
No of pages:
For the attention of News Desks
Date:
14 July 2011
Ref:
SPEC 09/11
HMRC consults on dishonest tax agents
Fresh proposals to clamp down on dishonest tax agents were published by HM Revenue and
Customs (HMRC) today.
The discussion document “Working with Tax Agents: Dishonest Conduct” sets out HMRC’s
latest proposals and draft legislation. Key points include:

The issuing of dishonest conduct notices, with a right of appeal where there is evidence a
tax agent has dishonestly advised or assisted clients;

Access to the working papers of dishonest tax agents, subject to approval by the First Tier
TaxTribunal once dishonest conduct has been determined;

Where working papers are no longer in the power or possession of the tax agent, HMRC
will be able to request these from a third party; and

A civil penalty on the dishonest tax agent and a power allowing HMRC to publish details on
the HMRC website where the agent does not make a full disclosure.
Dave Hartnett, Permanent Secretary for Tax, said:
“HMRC needs to be able to take effective civil action against a small number of dishonest
agents. Tackling dishonesty reassures the public, supports honest tax agents and protects
them against unfair competition.
“HMRC has worked closely with the representative bodies to develop draft legislation which
provides a fair, balanced and proportionate response.”
3
Notes for editors
1. The “Working with Tax Agents: Dishonest Conduct” discussion document is available at
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfp
b=true&_pageLabel=pageLibrary_ConsultationDocuments&propertyType=document&co
lumns=1&id=HMCE_PROD1_031460
2. The Review of Powers, Deterrents and Safeguards has been modernising and aligning
penalties and compliance checking powers across the taxes and duties administered by
the department since 2005
3. HMRC consulted in December 2009 on how the tax profession and HMRC could best
work together to ensure high standards of professionalism.
4. Draft legislation to address deliberate wrongdoing by tax agents was published in
February 2010. This covered access to working papers, civil penalties and publishing
details.
5. Since then, HMRC has taken time to work closely with representative bodies to address
agents’ concerns. Budget 2011 announced further consultation and revised draft
legislation over the summer of 2011. A formal response to the December 2009
consultation and February 2010 draft legislation is also published today at
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfp
b=true&_pageLabel=pageLibrary_ConsultationDocuments&propertyType=document&co
lumns=1&id=HMCE_PROD1_031461
6. The consultation period for the discussion document runs from 14 July to 16 September
2011.
Responses to, and enquiries about, this consultation should be directed to:
Email: [email protected]
HMRC Review of Powers, Working with Tax Agents
Room 1/72
100 Parliament Street
London SW1A 2BQ
Telephone: 020 7147 3223
Follow HMRC on Twitter @HMRCgovuk.
Issued by HM Revenue & Customs Press Office
Press enquiries only please contact:
Helen Jones
Tel:
020 7147 2328
E-mail:
[email protected]
Out of hours
Tel:
07860 359544
Website
www.hmrc.gov.uk