Journal :: Avoiding the unwelcome attentions of SOCA

Published: July 19, 2004
Author: Graham Dragon
Category: Tax
Permalink: Avoiding the unwelcome attentions of SOCA

I am sure most of us agree that any action to stop the activities of terrorists and crime lords is a good move, and probably applaud the government initiative to set up an FBI-style agency to do this ? ?SOCA? (Serious Organised Crime Agency).

How many of you, however, have read the White Paper ?One Step Ahead: a 21st Century Strategy to Defeat Organised Crime? and noticed that tax evasion is to be one of the serious crimes high on SOCA?s agenda? So what? We do not get involved in tax evasion and do not encourage our clients to get involved either, so why should we be concerned?

Well, the boundary between tax evasion, which is illegal, and tax avoidance, which is legal, is moving and becoming more indistinct every year. If you read some recent discussions in the House of Lords you will recognise that even our legislators often have great difficulty distinguishing between the two. And the latest Budget indicates very clearly the hostility this government feels for tax avoidance schemes.

So, those financial advisers who focus particularly on tax avoidance rather than simply tax mitigation could soon find themselves the focus of unwelcome attention by the new SOCA. And what powers will this agency have? The power to demand any and all information on any of the adviser?s clients, even if they have no evidence that the adviser is guilty of conspiring with clients to commit offences such as tax evasion.

The message, from the Budget as well as from the White Paper on SOCA, is that we should now focus much more on tax mitigation than on tax avoidance. If you are a little rusty on the very wide range of tax mitigation schemes and products available now is the time to brush up your skills. And if you do wish to include in your armoury at least a few schemes more appropriately designated ?tax avoidance? than ?tax mitigation?, you need to keep up to date with the ever moving boundaries of tax avoidance and tax evasion.

Technical knowledge is unlikely to win you any clients unless you also have the right sales skills. But the right technical knowledge could certainly help you and your clients avoid the unwelcome attentions of Inland Revenue and, in due course, the UK?s new ?FBI?.

Found this article helpful?

Why not sign up for our Journal to have articles like these emailed to you regularly so you can stay ahead of the game. Alternatively, continue reading our Journal Archive.

About Graham Dragon

Note: We do not accept liability for the content of our e-mail Journal or for the consequences of any actions taken or not taken by yourself or any third party on the basis of the information provided. We are unable to advise you on tax matters. If you wish to obtain further information or help on this or on any other tax matters you should consult with a tax accountant or other suitably qualified and experienced tax professional.

Share This Article

About the Adviser Breakthrough Journal

Adviser Breakthrough Solutions provides the IFA community with a FREE and easy way to keep ahead of the game. Subscription to this journal is FREE. To sign up simply enter your name and email address below.

View Journal Archive

Journal Categories

Back Office (10)

The Back Office Tip of the Month is your opportunity to find out what is working well for other advisers, and save having to reinvent the wheel yourself. It will cover the broad spectrum of the ways in which successful practices organise themselves, as well as some of the industry specific processes which help make our jobs easier.

Client Care (7)

We all want to ensure we continue to give the very best service to our clients.

In the Client Care Tip of the Month we will share ideas other advisers have found help them to maintain excellence in the ways they look after their clients.

Marketing (16)

Any business that wants to survive has to get its marketing right. In the midst of an economic boom, plenty of businesses go bust; and in the midst of a recession, plenty of businesses grow from strength to strength. The difference between the two types of business is almost invariably linked to their marketing.

In the Marketing Tip of the Month we will share with you some marketing ideas successful advisers are using right now to ensure their practices not only survive, but thrive.

Money Making (6)

As a financial adviser you are not here to practise an interesting hobby. Your practice is a business. A business which should provide you with the income you want.

The Money Making Tip of the Month recognises this, and will provide you with ideas which you can adapt to ensure you really get the income you want out of your practice.

Motivational (3)

It is a fact of life that the more motivated we are, the more we can achieve. But it also seems to be a fact in our industry that wherever we turn we see news and gossip that demotivates rather than motivates us.

The Motivational Tip of the Month is intended to reverse that negative trend. It will be a reminder of just why we joined our profession in the first place and is designed to inspire you to achieve the great things of which you really are capable.

Tax (76)

Most clients recognise the value of proper tax planning. They may rarely act on the tax advice you give them, but they appreciate the fact that you gave it to them anyway. It probably puts you head and shoulders above any other financial advisers they may have met, and reinforces the fact that you are a professional who is there to help them.

Each month we will give you a tax tip you may wish to slip into your conversations with your clients, or even include in your newsletter to them.

Time Management (3)

Whoever your hero in life may be, whether it is Bill Gates, Warren Buffett, Leonardo Da Vinci, or Mother Teresa, that person had exactly the same number of hours in their day as you when they achieved greatness. The big difference is how they used those hours.

The Time Management Tip of the Month will share ideas you can put into practice to squeeze more value out of your day.