HMRC taskforce to target tax evasion by London lawyers
HM Revenue & Customs (HMRC) has launched a taskforce to target tax evasion by London lawyers, as part of wider efforts to recover almost £20m for the public purse, reports Accountancy Age. The legal profession in London has been selected as one of five high-risk industries targeted, including groceries and retail in north and south Wales; hair and beauty in the northeast; restaurants in the southeast and Solent; and the motor industry in Scotland.Roughly £3m is expected to come from the legal industry.
September 18, 2012 at 08:16 AM
3 minute read
HM Revenue & Customs (HMRC) has launched a taskforce to target tax evasion by London lawyers, as part of wider efforts to recover almost £20m for the public purse, reports Accountancy Age.
The legal profession in London has been selected as one of five high-risk industries targeted, including groceries and retail in north and south Wales; hair and beauty in the northeast; restaurants in the southeast and Solent; and the motor industry in Scotland. Roughly £3m is expected to come from the legal industry.
Michael Todd QC, chairman of the Bar, commented: "It is not, at present, clear to us exactly why the legal profession has been targeted by HMRC. Barristers provide an essential, front-line public service which is crucial to the smooth running of our country's excellent and world-renowned justice system. The law is one of the UK's strongest exports, and barristers and solicitors bring billions in revenue to the UK every year.
"The Bar Council expects barristers, like any other group of taxpayers, to meet their tax obligations.
"My predecessor, Peter Lodder QC, wrote to David Gauke MP last December, to invite him to discuss barristers' liability to pay taxes for work which has been done, but for which the fees had not been paid by the Government. He declined to meet us, and we were unaware, until yesterday, that HMRC had specific concerns about the tax affairs of lawyers.
"We are concerned that HMRC has chosen to proceed in this manner, rather than using the channels of communication with the relevant professional bodies, which have always been open. In future, we would welcome a greater level of engagement with HMRC, so that we can better assist it in carrying out its duties to the public."
The budget for the taskforces is part of the £917m earmarked by the Government to tackle tax avoidance and evasion, although it is not known what proportion of that budget the taskforces take up.
Compliance checks will be carried out, as well as announced and unannounced visits, while invasive investigations and potential criminal proceedings await those who continue to dodge their bills.
It is hoped news of the spot-checks will encourage offending parties from the target industries to come forward voluntarily to settle any outstanding liabilities.
HMRC director-general of enforcement and compliance Mike Eland said: "These taskforces bring together specialists from across HMRC to find people who are not paying what they should. If you have paid all your taxes you have nothing to worry about. But for those deliberately evading tax, be warned that HMRC is coming after you.
"This is not an empty threat – HMRC can and will track you down if you choose to break the rules. We are on target to collect more than £50m as a result of taskforces launched in 2011-12."
Gary Ashford, head of tax investigations at RSM Tenon commented: "This approach has been used by HMRC for some time now and is considered highly effective. The latest target of London lawyers is likely to be highly controversial, but this is serious and some are bound to result in tax investigations, even including criminal actions."
Accountancy Age is an Incisive Media sister title of Legal Week.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllSingapore Litigators Shift Competitive Landscape as Another Senior Duo Sets Up Own Shop
Squire Patton Boggs Hires 7-Lawyer Team to Beef Up ESG Practice in Brussels
2 minute readSkadden, White & Case Guide Citigroup Demerger in Mexico
Trending Stories
- 1Lawyers' Phones Are Ringing: What Should Employers Do If ICE Raids Their Business?
- 2Freshfields Hires Ex-SEC Corporate Finance Director in Silicon Valley
- 3Meet the SEC's New Interim General Counsel
- 4Will Madrid Become the Next Arbitration Hub?
- 5‘Ripe for SCOTUS’: Ruling Creates Circuit Split on NLRB’s Expanded Monetary Remedies
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250