Taxman to keep a closer eye on entrepreneurs
Mar 14 2008
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HM Revenue and Customs (HMRC) is to be given more powers to pursue and penalise would-be tax evaders.
Tax payers could be fined up to 30 per cent of any unpaid tax if they do not 'take reasonable care' when stating their income on their self-assessment tax form under the Finance Bill 2008.
Previously the penalties have been five per cent of any tax owed.
Deliberately misleading HMRC will lead to a much higher level of fine.
Intentionally failing to declare any taxable income will incur a penalty of 70 per cent of any tax liable.
And taxpayers who try to conceal deliberate ommissions could be charged a fine equal to 100 per cent of any amount they owe.
Along with the ability to impose these new higher charges, the HMRC will also gain powers of enforcement which will allow them to make unannounced visits to homes to inspect tax records.
HMRC estimates the amount lost to tax evasion to be somewhere between £11 billion and £41 billion annually.
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