HMRC has not fined a single enabler of offshore tax evasion in five years, according to data obtained through a Freedom of Information (FOI) request. This is despite HMRC’s landmark powers, introduced in 2017, allowing them to impose substantial fines.
The data, released to the Bureau of Investigative Journalism (TBIJ), suggests that HMRC is failing to target the architects of offshore tax evasion schemes, focusing instead on the clients of these schemes. Since the law changed in 2017, no partnership or company has been fined for enabling tax evasion, according to the FOI request.
Michelle Sloane, a tax disputes partner at law firm RPC, commented: “Enablers were and still are a big focus for HMRC. But these figures show their rhetoric on tackling enablers … is clearly not being followed through with action.”
A spokesperson for HMRC responded: “We have a strong track record in tackling offshore non-compliance. Since the launch of our No Safe Havens strategy in 2019, we have secured almost £700 million from offshore initiatives.”
