Serious Tax Evasion Suspected in 27 Large Companies
HMRC’s large business directorate opened investigations for possible ‘serious’ tax evasion into 27 of the UK’s top 2,100 businesses in 2017-18, according to figures obtained by Pinsent Masons.
HMRC defines ‘serious’ evasion as involving more than £50,000 in tax or where prosecution is possible.
The number of referrals of individual tax-payers and small businesses increased by 24% in two tax years: from 2,586 cases in 2016-17 to 3,204 in 2017-18. But investigations into wealthy individuals and mid-sized businesses remained relatively unchanged (232 and 228).
However, according to the law firm the number of ‘big-ticket’ cases against high net worth individuals is set to increase, thanks to the rollout of the common reporting standard (CRS). Under this agreement, foreign tax authorities will provide HMRC with more information about UK residents with offshore bank accounts.
Pinsent Masons partner Jason Collins said: “With increased global information sharing among tax authorities, HMRC has access to even more taxpayer data to crack down on any suspected tax evasion.”
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