Chapter 1 - 4.8 - Dishonest Conduct by Tax Agents

Question 1

What is a tax agent?

Answer 1

An individual who assists clients with their tax affairs

Question 1

What three things can HMRC do if they have evidence that a tax agent has acted dishonestly?

Answer 1

• Issue a file access note to obtain the working papers of the tax agent
• Issue a conduct notice
• Publish information about the tax agent

Question 2

What is the minimum and maximum penalty HMRC can issue?

Answer 2

Minimum - £5,000
Maximum - £50,000
Dependent on the tax agent’s behaviour

Question 3

When can a penalty of £300 be imposed? What else can be issued?

Answer 3

If the tax agent refuses to comply with a file access notice. They can also be charged additional £60 daily penalties

Question 4

What does it mean if the tax agent is found to have been dishonest by HMRC?

Answer 4

They will have been in breach of professional ethical guidelines. Furthermore, if the agent is a member of a professional body such as the ICAEW, there may be disciplinary consequences