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HMRC targets rag trade and alcohol industry

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21st Nov 2012
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Tax evaders in the rag trade and alcohol industry are among the latest targets for HMRC investigators.

The Revenue has announced new teams of investigators who will target those who do not pay the right amount of tax in three sectors, including:

  • The rag trade in the Midlands, North Wales and North West, including manufacturing, wholesale, retail and textile recycling
  • The alcohol industry in Scotland, including Aberdeen and Inverness
  • Rental property in the South East

The taskforces are expected to recover around £17m in tax evasion for HMRC.

Exchequer secretary David Gauke said: “The vast majority of people play by the rules. We will not tolerate tax evasion and will crack down on the minority who choose to break the rules.”

HMRC is also on target to collect more than £50m as a result of taskforces launched in 2011-12, he said.

The taskforces are part of £917m in funding from the government spending review to tackle tax evasion, avoidance and fraud from 2011/12. The target is to raise an additional £7bn each year by 2014/15.

HMRC has launched 30 taskforces since May 2011 and says it has raised more than £500m from taskforces including offshore disclosure facilities, over the past five years.

The £500m figure only accounts for 2% of the estimated £32bn tax gap - the difference between the tax that HMRC thinks should be collected and the amount actually collected.

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By jmwaa
27th Nov 2012 10:48

the estimated £32bn tax gap

We hear a lot about this but how does HMRC arrive at their estimate of what HMRC 'thinks' they should collect?

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