HM Revenue & Customs (HMRC) has fined Isle of Man-based AML Tax (UK) Limited £150,000 ($197,259, €178,352) for failing to provide the UK taxman with “legally required information”.
The taxman said that the company has been “aggressively” promoting tax avoidance schemes in the UK for years.
The fine comes after HMRC brought an upper tribunal case over the firm’s failure to comply with formal information notices as part of a tax investigation.
The company must now hand over the required records to enable HMRC to calculate the tax owed, which is currently estimated to be more than £3m.
AML Tax (UK) Limited is directed by Arthur Lancaster and part of Doug Barrowman’s Isle of Man-based Knox Group.
Details
On 14 March 2022 , the tribunal ruling stated: “Overall, we were left with the impression that Mr Lancaster was evasive, providing as little evidence as possible and that he did not wish to volunteer anything more than he considered necessary.
“As a result, it seems to us that the evidence Mr Lancaster gave in his witness statements and orally was confused, lacking in candour, in some respects incorrect and littered with inconsistencies.”
The £150,000 fine is in addition to penalties already issued by HMRC totalling around £9,000.
HMRC will now examine AML’s financial records to assess their Corporation Tax bill for 2014 and 2015.
‘Frustrate’
Mary Aiston, HMRC counter avoidance director, said: “We are committed to ensuring everyone pays the tax they legally owe. We will not allow companies to simply ignore their legal duty.
“AML Tax used a series of tactics to try and frustrate HMRC’s efforts to work out the tax that was legally 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.”
International Adviser has contacted AML Tax (UK) Limited, Knox House and Lancaster for a comment but they were not able to provide one in time for publication.
