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Another day, another amnesty….

Tax avoidance has been big news of late, with much interest directed at international tax transparency for large corporations. But for individuals, is there now a danger of the UK being “amnestied out” by the sheer volume and variety of different HMRC initiatives?

Since 2007 we have had no less than 18 different disclosure facilities, all creditable attempts by HMRC at getting individuals to voluntarily disclose their tax irregularities.

From the tax return submission ‘catch up’ plans at the ‘innocent’ end, to the Liechtenstein and more recent Crown Dependency Disclosure Facilities at the other ‘serious’ end, these initiatives cover a wide range of issues and sectors.

This week sees the introduction of yet another HMRC disclosure facility – the ‘Health and Wellbeing Tax Plan’.

But haven’t we seen this before in the form of the doctors and dentists ‘Tax Health Plan’ in 2010?

Well no – this new initiative is aimed at the undisclosed tax liabilities of professionals such as physiotherapists, chiropodists, osteopaths and those involved in alternative medicine.

Under the Health and Wellbeing Tax Plan, those wishing to come forward have until 31 December 2013 to notify an intent to disclose, and then until 6 April 2014 to submit their calculations and settle up. Beneficial penalty terms will be offered to those who come clean, and harsher financial penalties or criminal investigation leading to potential prosecution for those who don’t.

So why is HMRC intent on pursuing this constant drip feed of initiatives? Could it be that the department feels confident of getting good results by chasing down potential tax cheats for whom industry-specific and quality third-party information is being gathered? Won’t other tax evaders just sit back and wait for the introduction of a facility which deals with their own sector? Cynics might think that this is happening already.

Wouldn’t it be better for HMRC to simply introduce a single all-embracing, catch-all disclosure initiative branded as a true ‘last chance’? A general tax disclosure campaign offering immunity from prosecution and light-touch penalties would more likely encourage voluntary disclosure than the hitherto piecemeal approach across a number of varied sectors. And might it also result in a windfall for the Chancellor this side of the 2015 election?

This was posted in Bdaily's Members' News section by George Bull .