'Headache' anticipated

May 6 2009 By The Journal

A NEW "get tough" approach to tax enforcement is set to create serious problems for companies, according to North law firm Ward Hadaway.

Measures introduced in the Budget will make senior finance officers at larger businesses personally liable for companies’ tax affairs, with penalties of up to £5,000 levied on individuals for failing to meet the new obligations.

Tax experts at Ward Hadaway say the new rules, combined with other Budget plans to "name and shame" people who evade tax of over £25,000, signal a much more aggressive approach from HM Revenue & Customs and could cause a major headache for the North’s biggest businesses.

Paul Christian, partner and head of tax at Ward Hadaway, said: "In recent years, HMRC has taken a more conciliatory approach towards corporate tax matters, but these changes demonstrate a definite ‘get tough’ attitude."