HMRC consults on ‘Direct Recovery of Debts’: comment from Paul Spindler
Tax partner Paul Spindler comments: “I welcome the Treasury Select Committee’s call on the government to justify the retrospective nature of upfront payment of taxes in tax avoidance cases.
“This initiative may only be successful in a minority of cases and could, in the meantime, force many taxpayers into serious financial hardship or even personal bankruptcy – which would, in turn, result in significant costs to the state.
“Whilst it may be a policy objective of the government to tackle tax avoidance, it would be very wrong for individuals to be penalised for the failures and shortfalls of unclear tax legislation.
“My hope is that the government would take heed of the Committee’s comments before individuals’ livelihoods are affected.”