HMRC Cracks Down on Tax Avoidance Schemes: Struck-off Solicitor Ordered to Stop Promoting
In a significant move to combat tax avoidance, HM Revenue & Customs (HMRC) has issued two stop notices to Paul Baxendale-Walker, a struck-off solicitor, under the Promoters of Tax Avoidance Schemes (POTAS) legislation. This is the first time such notices have been issued to an individual rather than a company promoting a tax avoidance scheme.
According to HMRC, the notices cover schemes involving "artificial arrangements, including the use of offshore trusts, designed to claim tax deductions without genuine business purpose". The schemes create complex structures to ensure money remains available to the users while claiming to avoid the tax due. This move by HMRC is part of its ongoing efforts to tackle tax avoidance and ensure that individuals and companies comply with tax laws.
Baxendale-Walker, who was admitted to the roll in 1990, suspended in 2005, and struck off in 2007, has a history of questionable activities. In 2016, he was fined after pleading guilty to impersonating an HMRC official to attempt to obtain information from the Solicitors Regulation Authority. This latest development raises concerns about the types of schemes being promoted and the individuals involved in them.
The POTAS legislation gives HMRC the power to issue stop notices to individuals and companies promoting tax avoidance schemes. The notices require the individual or company to stop promoting the scheme and to disclose details of the scheme to HMRC. Failure to comply with a stop notice can result in criminal prosecution. As the Law Gazette reports, "HMRC said yesterday that it had issued two stop notices to Paul Baxendale-Walker under Promoters of Tax Avoidance Schemes (POTAS) legislation" (Law Gazette, "Ex-solicitor ordered to stop promoting tax avoidance schemes").
In response to the stop notices, Baxendale-Walker, writing under the name ‘Paul Chaplin’ on social media, claimed that HMRC had published false information and that the stop notices were void. He also made a veiled threat, advising readers to "get ready practising Nazi salutes, for each time an HMRC Officer rides by in his staff car: paid for by you". This reaction from Baxendale-Walker suggests that he may be resistant to the efforts of HMRC to crack down on tax avoidance schemes.
The issue of tax avoidance schemes has been a major concern for HMRC in recent years. These schemes often involve complex structures and artificial arrangements designed to avoid tax liabilities. As HMRC continues to tackle tax avoidance, individuals and companies promoting such schemes can expect to face increased scrutiny and enforcement action. As reported by the Law Gazette, "The schemes create complex structures to ensure money remains available to the users while claiming to avoid the tax due" (Law Gazette, "Ex-solicitor ordered to stop promoting tax avoidance schemes").
The Law Gazette has learned that HMRC is committed to using all available powers to tackle tax avoidance and ensure that individuals and companies comply with tax laws. The issue of stop notices to Baxendale-Walker under POTAS legislation demonstrates the authority’s determination to crack down on promoters of tax avoidance schemes. As the source notes, "This is the first time that such notices have been issued to an individual rather than to a company promoting a tax avoidance scheme" (Law Gazette, "Ex-solicitor ordered to stop promoting tax avoidance schemes").
The case of Paul Baxendale-Walker serves as a warning to individuals and companies involved in promoting tax avoidance schemes. HMRC’s actions demonstrate that the authority will take robust action to tackle tax avoidance and ensure compliance with tax laws. As reported by the Law Gazette, "Baxendale-Walker was admitted to the roll in 1990, suspended in 2005 and struck off in 2007" (Law Gazette, "Ex-solicitor ordered to stop promoting tax avoidance schemes").
In conclusion, HMRC’s decision to issue stop notices to Paul Baxendale-Walker under POTAS legislation marks a significant step in the authority’s efforts to tackle tax avoidance. The case highlights the types of schemes being promoted and the individuals involved in them, and serves as a warning to those who would seek to avoid tax liabilities. As the Law Gazette reports, "HMRC said yesterday that it had issued two stop notices to Paul Baxendale-Walker under Promoters of Tax Avoidance Schemes (POTAS) legislation" (Law Gazette, "Ex-solicitor ordered to stop promoting tax avoidance schemes").
Source: Law Gazette
