Investment: Fraud
The question
To ask the Chancellor of the Exchequer, whether HMRC has issued tax liability demands to people who have been victims of investment fraud; and what steps she is taking to review such cases to avoid penalising victims of financial crime.
Answered by James Murray
HMRC is responsible for managing the tax system and is required by law to collect tax due. It must apply the law correctly and individuals are responsible for their own tax affairs.
Where individuals find themselves with unexpected tax bills as a result of taking bad advice from a third party on an investments scheme, this does not mitigate any tax that is legally due.
HMRC works with individuals to understand the facts of each case and only pursues tax where there is a genuine tax liability. It tailors its approach to individual circumstances and takes a supportive and proportionate approach to recovering tax due, including offering ‘Time to Pay’ instalment arrangements where appropriate, and providing extra support for customer who need it.
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