The online campaigning organisation Avaaz issued this press release over night:
HMRC threatened with legal action over HSBC tax ‘loopholes'
*Avaaz calls for judicial review over misuse of amnesty, as 950,000 join campaign*
HMRC is facing potential legal action for failing to prosecute British taxpayers listed in the HSBC tax scandal. Tax officials could face judicial review over decisions taken to offer Swiss bank account holders an amnesty deal designed to encourage unknown tax dodgers to come in from the cold, not as a mechanism to deal with those caught out by the system.
Lawyers acting on behalf of the global campaigning movement Avaaz have sent a pre-action letter to HMRC demanding details of why the Liechtenstein Disclosure Facility (LDF), an amnesty aimed at allowing tax-dodgers to bring hidden wealth into the tax system, was offered to those HMRC knew about on the HSBC lists. This is the first step towards a possible judicial review of HMRC's actions.
The LDF aims to encourage tax evaders to declare hidden money by offering favourable terms and immunity from prosecution if they come forward. But HMRC boss Lin Homer told Parliament that those caught out by the HSBC leaks were ‘encouraged' to claim the amnesty rather than face prosecution.
Alex Wilks, Avaaz Campaign Director, said: “If the police extended the terms of knife amnesties to criminals caught carrying weapons, the public would be outraged. Tax officials must urgently explain why they gave get out of jail free cards to so many wealthy tax dodgers.”
Jolyon Maugham QC of Devereux Chambers, acting on behalf of Avaaz, said: "The conduct of HMRC's handling of the HSBC leaks has attracted huge public and Parliamentary interest. The High Court should now have the opportunity to scrutinise what tax officials did and didn't do."
The letter calls on HMRC to explain why the LDF was offered to tax-dodgers named in the HSBC files, instead of bringing more punitive action against them. The UK has brought just one prosecution out of the thousands of British citizens named in the Swissleaks. By contrast other countries whose taxpayers were named in the leaks have brought a series of prosecutions, and last week Arlette Ricci was jailed in France for tax evasion.
The letter comes after more than 950,000 people around the world signed a petition calling for investigations and prosecutions of wealthy tax evaders. The pre-action letter was prepared by the legal firm Leigh Day on behalf of Avaaz. HMRC now has 30 days to reply.
To see the full letter: https://avaazimages.s3.amazonaws.com/LD%20to%20HMRC%20-%20HSBC%2029.04.2015.PDF
There is more on this in the Guardian, here.
I warmly welcome this move, and the entry of Jolyon Maugham into the fray. It is time HMRC's top management realised they are accountable.
Of course, an Office for Tax Responsibility would be better still.
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Some interesting conversations and meetings will be taking place in the higher echelons of HMRC then, Richard. And I’d suspect a good number of those on HMRC’s board will be making some calls and perhaps calling in some favours to try to derail or undermine this action is quickly as they can.
One thing that works in its favour now though is that the Tories are no longer in a position to come to Lin Homer’s aid. Lets hope it stays that way come next Friday. Homer must surely be one of the first senior civil servants an incoming (non Tory) government dispenses with, along with her various allies within HMRC and on the Board. They are so heavily tainted by, and deeply associated with not just the HSBC scandal but also the policy to deliberately run down HMRC to a point at which it can no longer carry many of its lawful functions effectively – thus providing an excuse for not pursuing actions against the likes of HSBC and other high net worth “customers” (sic).
I hope your optimism is justified
What is Margaret Hodge’s view on this…??!
😀
Is Ivan suggesting that HMRC can, and will, derail the legal process? How else can a JR be derailed? I cannot imagine Jolyon Maugham and Avaaz being undermined in any other way. Can you?
They can object to it
And will, no doubt
Is this the same Jolyon Maugham who has has made a name for himself acting on behalf of film scheme partnerships and other partnerships involved in tax abusive schemes? Poacher turned gamekeeper?
Yes
He carries that baggage with him
The case for a review of why HMRC steered so many of the HSBC list towards the LDF and its light touch penalties (and protection from criminal prosecution) is a strong one. The LDF was never intended to be available to applicants whose disclosures were not unprompted and Dave Hartnett confirmed in his evidence to the PAC on 23 March 2015 that “challenge letters” were supposedly issued to Project Solace (HSBC Suisse list)individuals under investigation with the express intention of pre-empting use by them of the LDF.
It is just a pity that the PAC’s grandstanding and cheap point-scoring when taking Lin Homer’s evidence (and later on that of the HSBC board members) got in the way of what should have been legitimate (and, frankly, obvious) questioning on this point. Symptomatic of the PAC’s flawed approach creating much heat and very little light.
Even less forgivable now Margaret Hodge’s personal knowledge and experience of using the LDF has come to light….
I think you are deeply mistaken
First, nothing suggests Margaret Hodge had any personal experience of the LDF
Second, without the PAC questioning we would know HMRC had been pushing people towards the LDF
Your suggestions are just wrong