Tax Crackdown Paying Of in UK
December 2, 2014 Taxation in UK
LONDON – The HMRC’s efforts to reign in tax evasion and tax avoidance by large companies is paying off, and has brought in GBP 0.8 billion more in tax revenues than in the previous year.
According to the result of new research released on December 1st by the UK based law firm Pinsent Masons, over the 12 months ending March 31st 2014 the HM Revenue and Customs collected approximately GBP 4 billion in extra tax revenues from the country’s largest business as a result of investigations and on-site visits.
The extra tax revenues collected over the 12 month is a 25 percent increase over the collections seen in the previous 12 months, only having reached GBP 3.2 billion.
According to the experts of Pinsent Masons, the increased tax revenues are a result of more thorough investigations by the LBS and a greater reliance on on-site investigations of large businesses and more direct contact with the heads of the tax departments of large businesses.
Further, the deeper investigations are intended to demonstrate to the public that the HMRC is seriously talking the problem of tax avoidance and evasion, and that large businesses in the UK are given free rein to underpay their taxes and neglect their obligations.
It was specifically noted in the research that due to the success of the intensive investigations into the tax affairs of large businesses, the HMRC is likely to also increase the attention paid to smaller firms, and mid-tier firms in the country should expect to face deeper investigations in the near future.
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