Investigations Update

The world of tax investigations has been quiet for a number of years, to my memory dating back to the merger between HMIT and Customs.

All of this is about to change!

The Treasury has announced that the “tax gap” ie the difference between tax collected and what should be collected, rose to £42bn in the year ended 5 April 2009. David Gauke, the exchequer secretary has declared that “the tax gap is staggering and this government is committed to taking the necessary action to bring it down”.

The government is consequently set to spend £900m over the next four years to tackle tax avoidance and evasion with a target yield of £7bn per year by 2014/15.

Clearly the coalition government means business and I would expect a much tougher and more rigorous approach from HMRC, with officers placed under intense pressure to produce results.

There are already signs that Inspectors will now consider a deal, which appeared to be outlawed by the Litigation and Settlements Strategy, but will, in my view have to resurface if HMRC is to make the targets which have been set. It will not be possible to reach the targets without a rapid turnover of cases, and a rapid turnover will not be possible unless the Tribunal route is avoided, therefore deals will have to be done.

We have a specialist tax investigations unit which can provide as much or as little help as you may require to assist you with enquiries.

Our specialists are extremely experienced in investigation work with most of them having worked as investigators in HMRC for a number of years before changing sides. We advise on investigations involving corporation tax, income tax, VAT, PAYE, national insurance, inheritance tax and offshore matters and our range of services include:

• Advice on tactics
• Review of correspondence and letter drafting
• Preparation of client for meeting with HMRC
• Attendance at HMRC meetings
• Hansard reports (cases of suspected serious fraud)
• Penalty and settlement negotiations
• Offshore (and other) non-disclosure facilities
• Cases of serious fraud/criminal activity
• Status enquiries including IR35 and CIS

One of our team spent 14 years in Special Compliance Office (now Special Investigations), many of those years as Group Leader and was involved in some 750 cases of suspected serious fraud/criminal prosecution. He then devised and delivered training intended to develop the investigative skills of HMRC. His expertise can be provided at a fraction of the cost of engaging the assistance of the large firms of accountants or indeed of using our competitors in the tax consultancy world.

If we can help you, or if you would like further information please contact Dave Williams on:
01803 320100
07776 140932
daw@francisclark.co.uk