Duncan Lewis

Romford Office

Crime and Civil cases

house 40 staff

The taxman will monitor deliberate tax defaulters for five years

Date: (2 April 2013)    |    

Total Comments: (0)    |    Add Comments

The HM Revenue & Customs will monitor the tax affairs of individuals, who become insolvent to dodge tax obligations.
The taxman will monitor the tax affairs of businesses and individuals who have deliberately evaded tax for up to five years evasion of tax under the Managing Serious Defaulters scheme in order to ensure they comply with their tax obligations and permanently change their behaviour.
This scheme would replace the earlier Managing Deliberate Defaulters scheme which has been in practice since 2011 with the aim of returning evaders back on track through close monitoring, with HMRC reporting that early indications suggest that those monitored were indeed disclosing previously undeclared income and amending previous tax returns.
More than 3,000 evaders had been placed in the existing scheme since it was launched in February 2011, with those currently monitored under it to be moved over to the new one when it begins.
The incoming scheme will include evaders who have received a civil evasion penalty for dishonestly VAT evasion; or are required to give a security deposit for VAT, environmental taxes, PAYE or national insurance; or become deliberately insolvent as a way of dodging their business taxation obligations.
Exchequer secretary to the Treasury David Gauke said that more and more evaders were using contrived insolvency to evade tax, either through liquidation of a business or bankruptcy of an individual.
He added that it was only fair that someone who has deliberately tried to evade tax should face extra scrutiny from HMRC.
He said that the measure along with the announcement in the budget was going to demonstrate how HMRC was seriously pursuing to crackdown on people who did not pay what they owed to the taxpayer.
In his budget presentation the UK Chancellor had unveiled his scheme said to be one of the largest ever packages of tax avoidance and evasion measures presented at a Budget on March 20. the Budget document known as the Red Book, sets out four key areas in which Budget represents a crack down, focusing on offshore tax evasion, the avoidance of employment taxes, tax avoidance schemes, and corporation tax.
It is estimated that collectively Osborne's measures will raise over GBP4.6bn (USD7bn) in new revenue over the next five years. The immediate closure of ten loopholes will also protect against the loss of billions in revenue, the Treasury calculates.

 

Name
Comments   
Email