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Globetrotting businesspeople are increasingly under scrutiny from HMRC, with no sign of a let-up in the near future, according to legal experts.
There has been a 29% rise in the number of tax probes into globally mobile high earners in the past year, City law firm PC has reported. The Revenue’s personal tax international compliance unit investigated 764 cases during 2014/15, up from 593 in 2013/14 and 438 in 2012/13.
Globetrotting businesspeople are increasingly under scrutiny from HMRC, with no sign of a let-up in the near future, according to legal experts.
There has been a 29% rise in the number of tax probes into globally mobile high earners in the past year, City law firm PC has reported. The Revenue’s personal tax international compliance unit investigated 764 cases during 2014/15, up from 593 in 2013/14 and 438 in 2012/13.
The escalating figures come from a clampdown on individuals who the taxman believes are wrongly claiming to be non-resident and non-domiciled in the UK. They include British citizens who live abroad and foreign businesspeople who spend time residing in this country.
HMRC view wealthy, internationally mobile people as a “rich seam” for enquiries because a successful challenge by the department can lead to a substantial increase in tax liability for the losing party, warned Adam Craggs, head of RPC’s tax disputes team.
“We expect the Revenue to continue to focus on such individuals, and scrutiny is likely to intensify in the short-to-medium term… [High-earners] shouldn’t expect any slackening of activity over the next year.”
Craggs added, “The kinds of cases investigated… are often very complex and far from clear cut. It is important to ensure all relevant evidence is available if an individual is to successfully withstand a challenge from HMRC to his or her domicile and residency statuses.”
