Taxation Assignment Example | Topics and Well Written Essays - 750 words

Taxation - Assignment Example 129). The anti-abuse rule introduced by HMRC strikes down the tax avoidance schemes, regardless of whether they are technically sound. It is possible to implement the law correctly if the avoidance scheme is abusive. HMRC could view the situation as a violation in case the gain was not disclosed. One of the professional requirements of a member would be to ensure that he does not assist a client to arrange or commit an offence since it is unlawful (Chartered Institute of Taxation, 2011, p. 20). From an ethical viewpoint, the most appropriate thing to do would be to advise Henry to avoid such a consideration since it is not legal. It would be vital to give Henry appropriate advice since he continues to act for him as a client. After the expiry of an initial period of an official enquiry, the Tax Management Act (section 29) provided a mechanism that would assist in the assessment of an individual’s income tax. The mechanism also assists in the assessment of capital gains in the following four years. Such assessments might take place regardless of whether they are in support or whether they are the consequences of an enquiry. The power to make the assessment is triggered when an HMRC officer makes a discovery that complies with the rules specified in Section 29. In Henry’s case, the discovery relates to the development of an insufficiency in an assessment. The self-assessment process provides HMRC with a straightforward system that assists in the mitigation of uncertainty. HMRC has the power to correct the glaring omissions, which is one of the ways through which the revenue can require additional tax liabilities. Conversely, the corrections can impose excessive reliefs under section 29. If the tax agent fails to provide information requested by HMRC, the body will investigate the agency to determine the possibility of dishonest conduct. In the case of a failure to supply information required, HMRC will charge the agent with civil penalties. Subsequently,