In future when tax agents in the UK are shown to be negligent or incompetent:
HMRC would have to consider its relationship with the practitioner. Options for HMRC could include:
- a requirement to put matters right for the past and the future plus
- financial penalties, and/or
- a report to a representative body, and/or
- an appropriate period of monitoring.
- a refusal to deal with the tax agent in future
Any financial penalties (whether resulting from careless or deliberate behaviour) could be fixed penalties, or up to a certain amount, or they could be linked to the tax at risk or the fee income or relevant turnover.
We're on our way to a Code of Conduct for Taxation.