Clamp Down on Tax Cheats
Stronger action will be taken on tax cheats who MPs believe are not being punished enough after making deliberate errors on their tax returns.
HM Revenue and Customs has devised a tougher penalty regime that will replace the existing rules which allow many people who enter inaccurate tax returns to escape without receiving a penalty.
The new regime will focus on setting tougher minimum penalty rates regarding deliberate errors found in tax returns. If errors are discovered by HMRC inquiries, penalties will be as much as 100 percent of the tax owed.
MPs have called for a tougher penalty regime following a report published in the Commons Public Accounts Committee, which revealed staggering evidence of tax cheats receiving considerably low penalties, and some receive none at all.
The report said over a quarter of civil investigations into fraud resulted in a penalty of less than 10 percent of the tax due. Concern in MPs was raised when it showed that 14 percent of cases received no penalty at all.
The HMRC said that a new penalty regime has now come to force for tax returns relating to 2008-09 onwards.
It is good to see that tougher penalties are being put in place. For too long now, people have been too confident in making deliberate errors in their tax returns, knowing that they will ‘get away with it’.
For more information, please visit www.glazers.co.uk
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