The following Corporation Tax guidance note by Tolley in association with Guy Smith of inTAX Ltd provides comprehensive and up to date tax information covering:
From 1 April 2013, the managing deliberate defaulters (MDD) programme has been replaced by the managing serious defaulters (MSD) programme.
Essentially the MSD programme represents an expansion of the previous MDD regime, in that more than just deliberate defaulters will not be subject to closer scrutiny by HMRC (see below).
Serious defaulters are regarded as high risk by HMRC. This is because the individuals and businesses concerned have demonstrated a willingness to deliberately evade direct or indirect tax.
The original MDD programme was introduced in February 2011 to monitor individuals and businesses (sole traders, partnerships and companies) that deliberately got their tax affairs wrong (ie they were classed as 'deliberate defaulters').
The programme was judged to be a success with some 3,000 taxpayers having been placed into MDD since its introduction. However, it is clear that HMRC felt that other high-risk taxpayers could not be included in the MDD programme due to the strict conditions as to who was classed as a deliberate defaulter and wanted to widen the remit of the programme.
The programme has four key objectives. These are to:
Under the new MSD programme, taxpayers are considered 'serious defaulters' if they have been:
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