HMRC’s response to tax abuse and insolvency consultation published, LNB News 09/11/2018 82 HMRC has published the responses to its consultation on tax abuse and insolvency on 7 November 2018. This confirmed the government will include legislation in the Finance Bill 2020 to make directors and other persons involved in tax avoidance, evasion or phoenixism jointly and severally liable for company tax liabilities where there is a risk that the company may deliberately enter insolvency.
What is the consultation about?
HMRC sought views on how to tackle what they accepted was a small minority of taxpayers who ‘abuse the insolvency regime to try to avoid or evade their tax liabilities’. The consultation ran from 11 April to 20 June 2018 and a number of responses were received from practitioners and businesses including other involuntary creditors, as well as R3 and the Insolvency Lawyers' Association (ILA).