HMRC ramps up its tax evasion efforts as its success rate jumps - will you be targeted?
| Published date | 13 September 2021 |
| Publication title | Express, The/The Express on Sunday: Web Edition Articles (London, England) |
RPC detailed cracking down on enablers of tax evasion has been a "key area of focus" for HMRC since it established its Fraud Investigation Service in 2015. HMRC's Fraud Investigation Service has been given additional resources to recruit more staff and as a result, RPC says the number of investigations into tax fraud enablers is likely to increase.
This may impact more people than one would think given the definition of "enablers."
RPC explained: "The definition of enablers is wide and includes wealth managers or technology companies that provide software which could potentially be used to distort profits, enabling businesses to evade tax.
"Enablers fall under two categories: those who are knowingly complicit in criminal activity and those who may not be aware of their client’s involvement in criminal activity but have failed to carry out proper risk assessment checks."
This means those who offer advisory services to families, such as financial and estate planners, could be targeted if they're not careful.
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Adam Craggs, Head of Tax Disputes and Partner at RPC, commented: "HMRC is determined to clamp down hard on anyone who aids in tax crimes, not just the perpetrator themselves.
"The Revenue has been effective in identifying traditional tax evasion, with the result that would-be evaders are becoming more sophisticated and are increasingly turning to third parties to assist them."
Michelle Sloane, a Partner at RPC, continued: "HMRC has broadened its focus considerably and is now coming after a wide range of enablers who it considers are complicit in tax evasion.
"This includes software developers and even those who operate storage facilities that could be used to hide high-value goods. If you are in any way assisting clients evade tax, HMRC may use its criminal powers against you."
On top of HMRC's own efforts, taxpayers appear to be more than willing to help tax evasion investigations, putting more in the firing line.
Recently, UHY Hacker Young, the national accountancy group, found that taxpayers made 107,000 reports of suspected tax evasion to HMRC in the last year.
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