The 12 months to 31 March 2018 saw HM Revenue & Customs (HMRC) issue 1,414 requests to professional services firms demanding confidential information on clients suspected of tax evasion, according to law firm RPC.
So-called ‘production orders' are issued by HMRC's Criminal Investigation Directorate to force third parties, such as accountants, lawyers and other professional services firms, to provide it with potentially incriminating information about their clients' affairs. According to RPC, the taxman is increasingly beginning criminal investigations against taxpayers who have participated in tax-planning arrangements designed to reduce their tax liability. These arrangements can include employee benefit trusts and film finance investments, the firm said, and issuing a production order is one way...
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