Good morning. This morning’s news includes HMRC coming up short in its tax evasion crackdown and PwC investigates how Brexit will affect the economy and jobs.
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HMRC will fail to hit evasion target
HMRC will fail to meet its £1bn target from kerbing tax evasion by £780m because it doesn’t have sufficient resources, according to the Office of Budget Responsibility.
The Mail on Sunday printed an extract from the OBR’s Budget report, which states: “HM Revenue & Customs is less optimistic about how much of the lost yield can be recouped through additional compliance activity, on the basis that they are unlikely to be able to work the higher number of additional cases on top of existing workloads”
QC Jolyon Maugham told The Mail on Sunday: "The wealthy are escaping the consequences of tax evasion because HMRC cannot pursue the cases. The idea of an amnesty is that you front up now and avoid the bad consequences later. This OBR report reveals that the equation is now: front up now but if you don’t there’s not much we can do.’
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Leaving EU will cost UK £100bn
Leaving the EU will cost the UK £100bn and jeopardise 950,000 jobs by 2020, according to a PwC report.
The CBI commissioned PwC to analyse the potential implications of the UK leaving the EU by running two exit strategies. Carolyn Fairbairn, CBI director-general, concluded that the analysis shows leaving the EU would be “a real blow for living standards, jobs and growth”. Fairbairn warns that “leaving the EU would mean a smaller economy in 2030”.
Fairbairn said: “The findings from PwC’s independent study also explain why the majority of UK businesses are in favour of remaining within the European Union. Even under optimistic assumptions, an exit triggers serious economic disruption.”
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Neymar found guilty for tax evasion
Barcelona forward Neymar has been found guilty of tax fraud for failing to report earnings and has been ordered to pay 188.8m Brazilian reals (£22.7m)
According to Brazilian daily Folha de Sao Paulo, Neymar used his company, Neymar y Deporte Marketing to avoid payment of 56.35m (Euros) in taxes between 2012 and 2014.
In February, Neymar was ordered to pay 100,000 (Euros) in a separate case in regards to unpaid taxes from 2007 and 2008.