Consultation outcome

Tax abuse and insolvency

• From: HM Revenue & Customs
• Published: 11 April 2018
• Last updated: 7 November 2018 — See all updates

This consultation has concluded

Read the full outcome

Tax abuse and insolvency: A discussion document - summary of responses

PDF, 134 KB, 11 pages

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Detail of outcome

This response document confirms that the government will legislate in 2019 to 2020 to allow HMRC to make directors and other persons involved in company tax avoidance, evasion or phoenixism jointly and severally liable for tax liabilities that arise from those activities where the company becomes insolvent.

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Original consultation

Summary

We are seeking views on how to tackle the small minority of taxpayers who abuse the insolvency regime to try to avoid or evade their tax liabilities.

This consultation ran from
9:30am on 11 April 2018 to 11:45pm on 20 June 2018

Consultation description

At Autumn Budget 2017 and Spring Statement 2018, the government announced that it would explore ways to tackle those who deliberately abuse the insolvency regime in trying to avoid or evade their tax liabilities, including through the use of phoenixism.

Please give us your views on how to tackle this abuse after reading the discussion paper ‘Tax Abuse and Insolvency’. This looks at several behaviours related to misuse of corporate insolvency - tax avoidance, tax evasion and repeated non-payment of tax - to identify potential solutions. These could include legislation, operational measures or other action.

This consultation only targets corporate bodies that exploit insolvency in this way and is not aimed at any particular size or type. Companies that enter insolvency for genuine commercial reasons will not be affected.

Documents

Tax Abuse and Insolvency: A Discussion Document

PDF, 446 KB, 17 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Published 11 April 2018
Last updated 7 November 2018 + show all updates

1. 7 November 2018

   Added summary of responses and outcome details.

2. 11 April 2018

   First published.