Why a public inquiry must shine a light on financial misconduct: Greg Wright

Margaret Snowdon, chair of the Pension Scams Industry Group, believes a statutory inquiry is needed to get to the heart of the problem.

She told me: “We also require HMRC to look at their policy on tax collection, work in line with their charter and to use powers to go after fraudsters rather than solely pursue the victims.”

A new report – Pensions and investment fraud scams – outlines the scale of one long-running scandal. Too many pension and investment fraud victims are encountering problems at all levels after reporting crimes committed against them.

Campaigners claim that HMRC is levying tax charges against investment and pension fraud victims rather than acting against the perpetrators of the crimes, which is leading to “severe welfare and financial issues” for victims.

The report, which combines the expertise of the Pension Scams Industry Group (PSIG) and the Investment Fraud All Party Parliamentary Group (IF APPG), calls for action to end victim blaming and an improved definition of fraud and scams.

Key recommendations from the IF APPG include a moratorium and settlement of historic cases and the introduction of new policies and legislation to regulate HMRC’s treatment and taxation of victims. It also calls for the introduction of a new victim welfare advocacy service and financial redress for victims.

The Investment Fraud APPG believes that young people and sports professionals are among the most commonly targeted groups in the UK, alongside people age over 55, who have been duped into pension liberation scams. Sports professionals have been targeted by crooks who are seeking their investment in products and properties which, were in fact, suspected investment frauds.

HMRC has said it sympathises with people who may have lost money by entering such arrangements and it handles these situations on a case by case basis.

"We recognise that dealing with large tax liabilities can lead to pressure on individuals and we are committed to identifying and supporting anyone who needs extra help,” the spokesman added.

“We have a legal duty to collect tax whenever it’s due but our message to anyone who is worried about paying what they owe is: please contact us as soon as possible to talk about your options.”

The sheer volume of cases linked to financial misconduct means the issue cannot be kicked into the long grass by regulators and Government. A wide-ranging public inquiry would shine a light into one of the murkiest corner of modern Britain.

Greg Wright is the deputy business editor of The Yorkshire Post