HMRC to pursue those who 'bend the rules'

HM Revenue and Customs has been tackling tax 'avoidance' and pursuing those who not only break the rules, but those who 'bend' them as part of its key objectives for the future.

Its publication 'Delivering our Vision: Business Plan 2009-10' outlines its key objectives and plans - with one of its main targets to 'improve the extent to which individuals and businesses pay the tax due and receive the credits and benefits to which they are entitled'.

It says that it will relentlessly pursue those who bend or break the rules with its objective being to reduce tax losses by a further £2.4 billion in 2009-2010.

One point deals specifically with HMRC's intention to respond robustly to tax avoidance. It says: "We will take necessary action to ensure the disclosure regime remains effective by engaging actively with our customers and through investigation and legal action. We will advise Ministers on new legislation to close down avoidance schemes and on simplifying current anti-avoidance legislation to make it easier to operate and understand while preserving its effect."

Bending rules

Similar wording in the Tax Charter has already provoked criticism from one law firm, who felt that HMRC's vow to 'relentlessly pursue' those who 'bend' the rules was far too strongly worded, as it could allow HMRC to adopt a highly aggressive stance towards taxpayers who are engaged in entirely legitimate tax planning.