A6.322 Dishonest conduct

A6.322 Dishonest conduct

Dishonest conduct is defined as something dishonest that a person does while acting as tax agent, with a view to bringing about a loss of tax1. It does not matter whether there is an actual loss of tax or whether the agent was acting on a client's instructions2. The dishonest action can include advising a client to do something that the agent knows to be dishonest or dishonestly omitting to do something.

A loss of tax would be brought about, for these purposes, if the client were to3:


    •     pay less tax than the law requires or obtain more tax relief that the law allows, or


    •     gain a timing advantage not allowed by law

Tax relief includes any exemption or deduction from tax as well as any credit against tax or repayment of tax4.

HMRC has confirmed that tax avoidance or tax planning, whether effective or not, which lack the required element of dishonesty, would not fall within the scope of this definition5.

The question also arises as to how to establish that an action is

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