Tax Avoidance: Prosecutions

(asked on 11th January 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many prosecutions of umbrella companies found to have committed tax avoidance there have been in each of the last five years.


Answered by
Lucy Frazer Portrait
Lucy Frazer
Secretary of State for Culture, Media and Sport
This question was answered on 17th January 2022

The vast majority of marketed tax avoidance schemes, including those involving umbrella company arrangements, do not work and can lead to large tax bills building up for those that use them. The promotion or use of these tax avoidance schemes is not in and of itself a criminal offence. However, there may be a range of fraud offences which might be committed by those who use or promote specific schemes or advise on their use.

Whilst HMRC does not routinely record whether criminal investigations into tax fraud feature the use of umbrella companies, and therefore are currently unable to provide a precise number, HMRC has confirmed that it has criminally investigated umbrella businesses in the past and has a number of current active criminal investigations involving umbrella arrangements.

The Government and HMRC are committed to tackling those who market and sell tax avoidance schemes. HMRC will continue to use its anti-avoidance regimes to challenge the entities and individuals who promote these schemes.

Prosecutions are only one type of intervention available where HMRC identify concerns.

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