Four types of tax evaders targeted in HMRC campaign
By Will Grahame-Clarke, 11 Oct 17
Tax investigators are ramping up the pressure on tax evaders with a ‘spotters guide’ identifying four types of offenders they are focusing on as a priority.
The HMRC survey of tax-evading small and medium-sized enterprises (SMEs) sheds light on their motivations and methods.
In their latest briefing note Mike Down, head of tax investigations, and Sarah Saunders tax manager at RSM comment that HMRC are looking to increase the perception that tax cheats will get caught and punished even for ‘small’ evasions.
“We have some concerns: there is a risk that innocent errors may be mistaken for evasion and punished excessively. While, as the report recognises, increased publicity about evasion may have the countereffect of normalising evasion.
“This will be a hard balance for HMRC to achieve but we applaud their initiative by seeking real world solutions to real world problems.”
HMRC estimates that evasion contributes £5.2bn to the tax gap, about 51% of which is due to SMEs.
Researchers interviewed 45 SMEs who had been found by HMRC to have deliberately evaded tax. The research sought to establish motivation, evasion methods and possible deterrents.
The report identified four categories of SME evaders: Click above to find more more.