UK Unveils New Tax Avoidance Taskforces
Wednesday November 09 2011 | 04:24 PM

TThe creation of five taskforces, targeting, among others, scrap metal dealers, construction traders and fast food outlets, has been unveiled by the UK tax authority, HM Revenue and Customs (HMRC).

HMRC announced on November 7 that specialist teams will undertake "intensive bursts of compliance activity" in specific high risk trade sectors and locations across the UK.

HMRC planned for the launch of 12 taskforces in 2011/12, the first of which was established in May, to investigate the restaurant industry. More are expected to follow in 2012/13.

The new taskforces will target:

• Scrap metal dealers in Scotland, focusing on those who are deliberately suppressing their income or inflating expenditure to evade paying tax;
• Construction traders who are self employed or run their own company who suppress sales or over-claim expenses in the North West and North Wales;
• Taxpayers not submitting their statutory returns across Corporation Tax, Income Tax Self Assessment, PAYE (pay-as-you-earn) and VAT in the South East;
• Fast food outlets deliberately falsifying their records and mis-declaring their true sales levels to avoid paying the correct taxes in Scotland (a taskforce aimed at London fast food outlets was launched in July); and
• Landlords owning or renting three or more properties in North West and North Wales.

David Gauke, the Exchequer Secretary, said: "Taskforces are a direct result of the Government’s GBP917m spending review re-investment to tackle tax evasion, avoidance and fraud, which aims to raise an additional GBP7bn each year by 2014/15."

Commenting on the news, Grant Summers, Tax Partner at Grant Thornton noted: "HMRC has been using its information powers and researching industries to identify those that are more likely to harbour tax evaders. These taskforces demonstrate HMRC's warning that there is no hiding place for undisclosed income and gains and that it will clamp down very hard on anyone who does not have their affairs in order. Failure to do so will run the very serious risk of prosecution when the designated taskforce identifies an anomaly."

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