HMRC Slams AML Tax with £150,000 Fine in Tax Evasion Crackdown
AML Tax (UK) Limited, part of Doug Barrowman’s Isle of Man-based Knox Group and led by Arthur Lancaster, has been hit with a hefty £150,000 fine. The penalty follows a legal battle after the firm refused to comply with HMRC’s information requests during a tax investigation.
Massive Tax Bill Looms Over AML Tax
As a result, AML Tax must now hand over crucial financial records so HMRC can calculate the tax owed — currently estimated at over £3 million. This comes on top of previous penalties totalling around £9,000.
HMRC Vows to End Tax Avoidance Tactics
“We are committed to ensuring everyone pays the tax they legally owe. We will not allow companies to simply ignore their legal duty,” said Mary Aiston, HMRC’s Counter Avoidance Director.
“AML Tax used a series of tactics to frustrate HMRC’s efforts to uncover the tax due, in a sustained campaign of non-compliance.”
“I’m delighted their obstructive conduct has been penalised. HMRC is determined to drive promoters of tax avoidance out of business.”
Director Arthur Lancaster Called ‘Evasive’ by Tribunal
The Upper Tribunal lambasted AML Tax and its director Arthur Lancaster, a prominent Chartered Accountant and Chartered Tax Adviser, for their conduct during the investigation.
The ruling branded Lancaster “evasive,” criticising him for offering minimal evidence and lacking openness.
“The evidence Mr Lancaster gave was confused, lacking in candour, in some respects incorrect and littered with inconsistencies,” the tribunal said.
HMRC Gears Up for Full Financial Scrutiny
With fines now imposed, HMRC will meticulously comb through AML’s financial records from 2014 and 2015 to pin down the Corporation Tax owed, intensifying the pressure on the beleaguered firm.
