Cowboy Tax Advisors
- Posted by admin
- 16 September 2013
It has recently come to the attention of the UK government that certain tax violations have occurred within the nation’s borders. Specifically, certain tax advisory firms are said to have allegedly helped corporations in planning and advising illegal tax planning, that may result in legal law suits if the cases are found the be true.
The Problem in the UK
According to recent reports provided by the United Kingdom’s BBC network, there are multiple tax advisory firms that have actively assumed the title of ‘cowboy’ financial firms, because of the reports saying these firms may be involved in illegal schemes regarding UK taxes. The UK government has made it clear that they believe many financial firms may be advising companies to avoid and ignore paying government taxes. If this is found to be true, the UK government is currently building a plan to punish such ‘cowboy’ tax advisors.
The Accusation Made
According to David Gauke, the United Kingdom’s Secretary to the Treasury, it is found possible that major corporations such as Google, Amazon and even Starbucks have made statements hinting to facts that they have not paid full taxes to the UK government. Furthermore, David Gauke says that while most tax advisors have started to move away from advising tax avoidance strategies, there are still a few out there that should be noted in this illegal scandal.
According to the article published in the BBC, cowboy firms incorporate illegal tax strategies with professional tax planning advise, which is considered unruly and unacceptable to HMRC, the UK government’s department responsible for tax advisors regulation. HMRC, officially known as Her Majesty’s Revenue and Customs, is currently supposed to take any tax advisory firms to court, should they be found guilty of promoting illegal tax planning. However, the HMRC is currently working on a new regulation strategy that would allow them to legally name and publish the tax advisors that were found guilty of this kind of fraud.
HMRC Statistics and Reports
The HMRC is a department of the UK government that is responsible for regulating organized fiscal crimes. It employs and maintains many criminal investigators that are solely dedicated to dampening and eliminating this type of crime in the United Kingdom. While certain departments of the UK government have questioned HMRC’s registration and regulation track record, the department’s Director of Investigations, Donald Toon, says that he is proud of the departments work and that a meeting will be held in October in which the UK government will review new laws proposed to help avoid companies not paying taxes.
Singapore and National Taxes
In regards to this new development in the UK, other countries may consider it wise to take notice of these fiscal tax events. Highly urbanized countries, such as Singapore, should note that such illegal tax planning schemes are not ideal to companies or individuals, especially in countries where foreign trade and business is regularly performed. Lastly, companies as well as their tax advisors should register and pay proper taxes in all countries in which they perform business.
With departments of government such as the HMRC and others looking closely into tax registration and records, there is no telling what new policies may be presented and accepted by national governments. For this reason, it is likely that many companies and individuals may want to check up on their current tax advisory firm to make sure that everything is legal at the end of the day.