HM Revenue and Customs (HMRC) collects income taxes such as Income Tax, Corporation Tax and Capital Gains Tax, as well as excise duty, stamp duty land tax and environmental taxes. They also enforce minimum wage compliance and oversee anti-money laundering registrations for Bill Payment Service Businesses, high-value dealers, and money services businesses. HMRC Spends Just 6% of Annual Budget on Fighting Tax Evasion.
Tax evasion is a serious issue
As Benjamin Franklin famously said, “there’s nothing certain in life except death and taxes.” Tax evasion is a big deal. It deprives governments of vital revenue. HMRC Spends Just 6% of Annual Budget on Fighting Tax Evasion.
The Panama and Paragon papers reveal that sophisticated tax avoidance schemes are being used by the ultra-wealthy to evade taxes. These strategies involve shady offshore companies, shell corporations, bribery and corruption, transfer pricing, and more. They are undetectable by random audits.
To reduce demand for these avoidance schemes, HMRC will continue to tackle the promoters and enablers who advertise them. They will use their full range of operational, engagement, and communications approaches to robustly pursue these individuals. They will also make it easier for taxpayers to spot avoidance schemes. The return on investment in preventing these avoidance schemes would be massive.
It costs the government billions of pounds every year
The government relies on taxpayers to pay their fair share of tax to fund services such as schools and hospitals. Tax avoidance undermines this principle and puts a strain on people who work hard to contribute.
The recent budget announced increased funding to combat tax avoidance. This is a welcome step, but more needs to be done. In the past, tax evasion has resulted in huge fines and even imprisonment for those involved. In addition, it has cost the government billions in lost revenue each year.
It’s a crime
It’s a crime that deprives governments of the money they need to fund essential services, like schools and hospitals.
The vast majority of taxpayers pay the right amount of tax at the right time. However, there are a minority who deliberately enter into tax avoidance schemes.
The government has strengthened its tools to tackle these promoters and will continue to monitor the market. Promoters who do not comply with disclosure requirements are likely to face significant sanctions, including insolvency proceedings.
It’s a waste of money
This is the main reason why governments need to close loopholes and crack down on tax avoidance.
The government will also strengthen our powers to tackle the promoters of these schemes needs read more hear.
