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HMRC targets Scottish restaurateurs in tax raids

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29th Mar 2012
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Two Glasgow restaurant owners have been detained on suspicion of failing to pay the right amount of VAT in an investigation led by HMRC. 

The raids were carried out on Monday as part of the ongoing HMRC taskforce operation targeting restaurants in Scotland. A production order for business records was also served on the accountants for this business.

One restaurant and three private addresses were visited, resulting in one man and one woman being detained, interviewed and then released. Investigations are ongoing.

An HMRC spokesperson told AccountingWEB that it was “standard practice” to release the individuals in question on bail and that it could result in a number of outcomes including a hefty tax bill or moving forward with a prosecution.

The specialist taskforce teams have been undertaking “intensive bursts of compliance activity” targeting specific high risk trade sectors and locations across the country.

Pauline Younger, taskforce lead for restaurants in Scotland, said: “These raids and detention of people suspected of not declaring income from the work they do are part of co-ordinated activity targeting the restaurant trade in Scotland.

“Honest businesses have absolutely nothing to worry about. But if you are deliberately seeking to evade tax, HMRC can and will track you down.  You will then face not only a heavy fine, but possibly a criminal prosecution as well.”

The taskforces are a direct result of the government’s spending review re-investment to tackle tax evasion, avoidance and fraud, which aims to raise an additional £7 billion each year by 2014/15.

During 2012/13 HMRC will launch 30 new taskforces to crack down on tax dodgers.

AccountingWEB has monitored HMRC’s progress since the start of 2010 with a taskforce tracker.

Replies (2)

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the sea otter
By memyself-eye
30th Mar 2012 09:09

Not just Scotland

One of our restaurant clients was the subject of a recent VAT visit, advised that it would take two days the inspector stayed two hours, pronounced himslef satisfied (as he should have been) and left.

Maybe not connected but a pleasing outcome.

My guess would be that HMRC could occupy all their staff with this area alone....

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By The Black Knight
02nd Apr 2012 12:44

Be my guess too !

What tips ?

They also never follow the cash.

I suspect there is considerable evasion being done by the suppliers too. Well known that large amounts of cash change hands for produce and meats.

Let alone staff wages.

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