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HMRC increase funding to tackle non-compliance and tax evasion and expand data collection

 

Posted on 13 July 2015

An additional £800 million of funding has been pledged to HMRC to help them combat non-compliance and tax evasion. The additional funding will be used to:

  • Tackle non-compliance by small and mid-sized businesses, public bodies and affluent individuals;
  • Allow HMRC to identify and tackle tax evasion and other non-compliance among wealthy individuals. The Government will also consult on enhancing the information reported to HMRC by wealthy individuals and trustees;
  • Triple the number of criminal investigations that HMRC undertake into serious and complex tax crime, focusing particularly on wealthy individuals and corporates; and
  • Tackle serious non-compliance by trusts, pension schemes and non-domiciled individuals.

 The following measures were also announced:

  • A new power to acquire data from online business intermediaries and electronic payment providers to help HMRC identify businesses that are trading but not declaring or paying tax. HMRC will invest in new investigators from 2016 to exploit this data;
  • The creation of a digital disclosure channel which makes it simple for taxpayers to disclose unpaid tax liabilities;
  • Legislation to require financial intermediaries (including tax advisers) to notify their customers about the Common Reporting Standard, the penalties for evasion and the opportunities to disclose; and
  • A 'special measures' regime to tackle businesses that persistently adopt highly aggressive behaviours including around tax planning, and a voluntary Code of Practice defining the standards HMRC expect large businesses to meet in their relationship with HMRC.

 Are you concerned about whether you have disclosed all your income or whether your tax affairs are in order? Smith Cooper have specialists who work with clients to help them to get their tax affairs in order and, where applicable, negotiate with HMRC in respect to settling historic liabilities. Contact our expert Jackie Hendley here

Read our full budget summaries here

 

 

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