There has been much debate at Enable IFA’s of Bishop’s Stortford about the expected revenues of the new tax unit some say they will be a relatively small share of the £7bn a year that HMRC is due to raise by closing the tax gap by 2014-15. The tax gap was estimated to be £35bn in 2009-10, with individuals accounting for 11 per cent of it, according to official figures.
The HMRC say the new unit did not involve new recruitment. The new unit also draws on expertise from across Revenue & Customs, including those who deal with corporate entities, residence and domicile issues and trusts and estates. Revenue & Customs said it would use sophisticated data mining techniques on publicly available information to identify individuals who own property abroad. It would then use risk assessment tools to identify people who did not appear able legitimately to afford the property, as well as those who did not appear to be declaring the correct income and gains from the property.
The issue of how rich individuals and corporations are taxed is politically charged. George Osborne, has justified his austerity plan on the basis that the burden would be fairly shared across society. The government views cracking down on evasion as an effective way of raising revenues and increasing the fairness of the tax system. Making sure your tax efficiency is above board and up-to-date is vital for effective money management something experience IFA’s Enable work with all the time.
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