| HMRC has hit back at
suggestions that tax amnesties, such as
the deals reached recently with
Switzerland and Luxembourg, could help
criminals gain respectability. Jonathan
Fisher QC claimed last month in a speech
to the 29th International Symposium on
Economic Crime at Jesus College,
Cambridge, that the amnesties risk turning
HMRC into “one of the largest
money-laundering operations in history.”
Describing the Swiss agreement as a
“grubby little deal”, Mr Fisher urged
Parliament to intervene to prevent
misguided tax amnesties being misused by
organised crime.
He said: “Organised criminals set up or
take over legitimate companies and predict
excessive corporation tax profits for the
company year. The companies pay large sums
in provisional tax based on predicted
profits, with these monies having been
derived from criminal activity. Later, the
company’s accountant approaches the tax
authority to explain that profits had been
far lower than anticipated and in this way
obtain a tax rebate.
“The second way in which HMRC has found
itself penetrated by criminals for money
laundering purposes takes place with the
active encouragement and support of the
Government.
“Since 2007 HMRC has offered taxpayers
a variety of different disclosure
opportunities to encourage the voluntary
disclosure of taxable income on hidden
assets in return for beneficial tax
treatment. The opportunity presented to
money launderers to legitimatise the
monies from their illegal activities and
bring them into the financial system is
colossal”.
HMRC have dismissed the claims saying
they have robust measures in place to
prevent fraud against the tax system.
LINK:
Tax amnesties turn HMRC into "biggest
money-laundering operation in history" |
