The UK Treasury is urging the Inland Revenue to raise its game in relation to tax investigations as fallout over the National Audit Report published last month continues. This is according to leading accounts and business consultants PKF.
Damning evidence of the Revenue's lacklustre performance in this area can be seen in new figures, which show that while 13% (£49 million) more is being spent on investigations, 5% or £200 million less is being collected in penalties and fines. The number of self-assessment filers failing to get their returns in on time-or at all- also increased last year, standing at almost 10%.
With Gordon Brown facing the double-edged sword of an increasing fiscal deficit and decreasing revenue streams from an economy that is slowing, pressure is being applied on the Revenue by the government to increase its tax take, Peter Penneycard, PKF's director of taxation revealed. As a result, unnecessary scrutiny may well be applied to those smaller firms which have filed their tax returns legitimately.
"Toughening up on tax collection is an attractive option for Gordon Brown who is stuck between the rock of his high spending commitments and the hard place of falling tax revenues," said Penneycard, adding: "Government pressure on the leadership of the Inland Revenue has recently been intense and it is likely that it will increase."
"Tax evaders should be caught but honest businesses and individuals may get caught up in the rush as opportunist Revenue investigators try to meet higher collection targets," the PKF tax director warned. He urged firms to be scrupulous in their tax affairs to avoid the attentions of an Inland Revenue increasingly prepared to push for sanctions against any wrongdoings. "As always, detailed and up to date records are the best defence and we would urge businesses and individuals to act now to ensure that their records are bulletproof," he advised.
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment