The role of 'professional enablers' in white-collar crime is set to come under new scrutiny this week as the government's Economic Crime and Transparency Bill enters its next parliamentary stage. Ministers are expected to come under pressure to accept amendments that would lower the threshold for the prosecution of individuals for corporate crimes and to create new 'failure to prevent' offences.

Meanwhile a report published by a cross-party group of MPs today includes calls on the government to prosecute advisers - including lawyers - who act in aggressive tax avoidance schemes. In his contribution to What is fair and responsible tax? Conservative Kevin Hollinrake urges the government to invest more in enforcement and prosecutions - 'particularly of the advisers'. 

Hollinrake attacks the government's stated policy 'not to pursue long and expensive court action'.

'Isn’t this like saying to a shoplifter, “just put the stuff back and we’ll forget all about it”,' he asks. 'Where is the deterrent?' A solution to the difficulty of criminal prosecution might be to apply a 'double reasonableness' test: 'In other words, would it be reasonable to view the avoidance scheme as reasonable? If not there should be a prosecution.'

He also calls for 'immediate change' to prevent any adviser sanctioned by HMRC from continuing to provide tax advice. 

Introducing the report, committee chair Dame Margaret Hodge MP argues that the complexity of the tax system means that it 'acts in favour of taxpayers who can afford to pay for advisers'. She concludes that 'Any person or company that attempts to dodge paying their fair share - the tax avoiders and evaders - should be met with the full force of the law.' 

The Economic Crime and Corporate Transparency Bill begins its committee stage in the House of Commons tomorrow.

 

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