Mark McLaughlin highlights a potential danger for taxpayers who rely on their advisers to deal with HMRC on their behalf.
“I left everything to my adviser” might seem like an acceptable approach to take. Taxpayers may also be forgiven for thinking that it provides them with a reasonable excuse if something goes wrong with their tax affairs.
Is it ‘reasonable’?
HM Revenue and Customs (HMRC) has powers to obtain information and documents (subject to limited exceptions) and can issue an information notice requiring the taxpayer to provide information or produce a document if it is reasonably required to check a taxpayer’s tax position (FA 2008, Sch 36). HMRC can impose penalties for failing to comply, subject to a right of appeal.
There is a possible escape from penalties if there is a ‘reasonable excuse’ for
