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HMRC have renewed their efforts to clampdown on illegal tax dodging, with an upgrade of their approach to monitoring evaders.
The managing serious defaulters programme was launched this week to replace the managing deliberate defaulters scheme that introduced in February 2011 and monitored more than 3,000 business and individuals who had been found to have intentionally evaded tax.
HMRC have renewed their efforts to clampdown on illegal tax dodging, with an upgrade of their approach to monitoring evaders.
The managing serious defaulters programme was launched this week to replace the managing deliberate defaulters scheme that introduced in February 2011 and monitored more than 3,000 business and individuals who had been found to have intentionally evaded tax.
The Revenue now intends to scrutinise the affairs of a greater number of known evaders. The department’s new initiative will extend to firms and people who have received a civil evasion penalty for dishonestly evading VAT, have been required to give a security deposit for VAT, environmental taxes, PAYE or National Insurance, or have become deliberately insolvent as a way of dodging business taxes.
Serious defaulters will be informed that they have been entered into the management programme, and those who fall within the 2009 Budget measure “Close monitoring of serious tax defaulters” will be told what additional information they must provide with their self assessment returns.
During scrutiny that can last for up to five years, HMRC may make visits – announced or unannounced – to the taxpayer’s place of business to carry out pre-return checks of books and records, demand records, and insist additional information or documents are submitted with the defaulter’s tax returns.
The department also has the powers to conduct in-depth compliance checks into the business or individual’s tax affairs, and observe and record the taxpayer’s business activities that will be cross-checked with related bank accounts.
The Revenue will undertake compliance activity under its inspection and information powers should the taxpayer fail to meet and maintain the obligations under the managing serious defaulters programme.
