Law and Regulation of Tax Professionals

In the world of competing demands on the UK Exchequer and the ever increasing scrutiny of tax planning and investigations into possible tax evasion it is of fundamental importance for the tax adviser to understand and appreciate the scope of their obligations and potential liabilities.

Advisers must meet the standards required by their governing professional body, adhere to the requirements of the law both as to the efficacy of the tax advice given to a client, and also to ensure that it is not negligent advice. Moreover, the tax adviser must also be vigilant to ensure that their services are not being exploited for the purposes of tax evasion.

A business will be liable if an employee or other associated person criminally facilitates tax evasion whilst acting in that capacity for the business, even if the senior management of the business was not involved or aware of what was going on. An associate includes all employees and persons providing services to the business, such as an accountant or adviser. Under this legislation, advisers face the possibility of substantial financial penalties, reputational damage and possibly prison.

Key areas covered in this book include updates to the Promoters of Tax Avoidance Scheme (POTAS) legislation and the Disclosure of Tax Avoidance Scheme (DOTAS legislation; the impact of the Money Laundering Regulations 2017, and the various codes of conduct of the various professional bodies.

Key case law covered includes the following:
Higgins & Ors v ERC Accountants & Business Advisers Ltd [2017] EWHC 2190 (Ch) (18 September 2017)
Halsall & Ors v Champion Consulting Ltd & Ors (Rev 1) [2017] EWHC 1079 (QB) (19 May 2017)
Barker v Baxendale Walker Solicitors (a firm) [2016] EWHC 664 (Ch)
Altus Group (UK) Limited v Baker Tilly Tax and Advisory Services LLP et ors [2015] EWHC 12 (Ch)
Mehjoo v Harben Barker [2014] EWCA Civ 358
Mehjoo v Harben Barker (a firm) & Anor [2013] EWHC 1669 (QB)
Matrix Securities Ltd v Theodore Goddard (a firm) and David Goldberg QC [1998] PNLR 280

Julian Hickey is a barrister at Temple Tax Chambers. He has a wide ranging practice which encompasses many areas of the tax code.