Managing Deliberate Defaulters Programme to Tackle UK Tax Avoidance
The Managing Deliberate Defaulters (MDD) programme has been established to monitor the affairs of those who have deliberately evaded tax for a period of between two to five years. It is the latest initiative to come from HM Revenue and Customs (HMRC) in its drive to halt the UK’s escalating tax arrears position, according to Steve Clancy, partner at tax arrears specialists, MCR.
The government announced the scheme in February.
Clancy said: “MDD will closely monitor the tax affairs of individuals and businesses who have deliberately evaded tax to ensure that they are complying with their tax obligations and have demonstrated a permanent change in their behaviour. This initiative, announced a few months ago and only now being implemented, is the latest in a string of initiatives being rolled out by HMRC as it evolves its strategy to tackle what some people believe to be a mountain of £50bn in overdue tax.
“Under the provisions of the MDD there is no right of appeal and a number of intrusive measures are being considered to enforce compliance. Nine hundred MDDs have already been targeted by HMRC, so beware,” he added.
There are a variety of ways HMRC can monitor a deliberate defaulter’s tax affairs. These include: