Arabic AR Chinese (Simplified) ZH-CN English EN French FR German DE Japanese JA Portuguese PT Russian RU Spanish ES Ukrainian UK

HMRC ‘hit by Brexit and Paradise Papers’

Latest news

    HM Revenue and CustomsImage copyright PA

    MPs are “far from confident” that HM Revenue and Customs can deal with the tax avoidance allegations made in the wake of the Paradise Paper leaks.

    The public accounts committee said the department would also struggle to deal with the pressure of Brexit and its own internal changes.

    HMRC believes Brexit alone could add 15% to its workload, the report said.

    The department says it has secured billions tackling tax avoidance and is focused on making Brexit a success.

    HMRC is undertaking 15 major transformation projects, according to the MPs’ report, involving the closure of offices around the country, relocating staff to 13 regional centres and and making tax returns digital.

    ‘Not deliverable’

    The public accounts committee said that was now “not deliverable” as originally envisaged because of pressure on the department.

    This could increase further if HMRC gets hold of the so-called Paradise Papers – leaked financial documents which revealed how the powerful and ultra-wealthy invest cash in offshore tax havens – the committee said.

    The MPs’ report quoted the department itself saying it was “not credible” to continue with its transformation programme as it is. It said HMRC had to “be clear about what it will do differently… and what the impact will be on customer service”.

    Image copyright AFP
    Image caption HMRC says it is focused on making Brexit a success

    Committee chairwoman Meg Hillier said the overhaul of HMRC “would have been less risky had it not attempted to do everything at the same time”.

    “What was already a precarious high-wire act is now being battered by the winds of Brexit, with potentially catastrophic consequences,” she said.

    “Action arising from allegations in the so-called Paradise Papers could also significantly increase the authority’s workload.

    “HMRC accepts something has to give and it now faces difficult decisions on how best to use its limited resources – decisions that must give full consideration to the needs of all taxpayers.”

    ‘Wholly unacceptable’

    She said while its customer service had improved there were still questions over its “call-answering times”.

    “Any new deterioration would be wholly unacceptable.”

    A spokesman for HMRC said they were “fully focused on making the UK’s exit from the EU a success” and was on track to be able to deal with “a significant increase in customs declarations at the border” by January 2019.

    “Following the Paradise Papers data leak, HMRC continues to look very closely at the information disclosed in the public domain, to see if it reveals anything new that could add to existing leads and investigations”.

    “Since 2010, HMRC has secured an extra £160bn by tackling tax avoidance, evasion and non-compliance, including £2.8bn from customers who tried to hide money abroad to avoid paying what they owe.

    View the original article: http://www.bbc.co.uk/news/uk-politics-42656739

    “The autumn Budget also introduced new measures to further bear down on offshore evasion and avoidance. These include a requirement notification of offshore structures, and extending the number of years of back tax that HMRC can assess.”

    In the same category are

    Rescuers find man in snowdrifts Image copyright Moffat MRT Image caption Rescuers battled through drifts in the dark for two hours to find the man A 64-year-old man has been resc...
    £495k compensation payments over NI potholes Image caption The recent cold snap may have made the pothole problem even worse Almost £500,000 has been paid out in compensation payments to moto...
    Brownhills stabbing: arrested man is victim’s father Image copyright Family handout Image caption Mylee Billingham died in hospital shortly after being found seriously injured The 54-year-old man arr...
    UKIP deputy leader Margot Parker resigns in protest to Henry Bolton Image copyright Getty Images Image caption Margot Parker said Henry Bolton's personal life "took over the job he was elected to do" UKIP's deputy ...
    After Logan Paul ‘suicide video’ YouTube denies it should be regulated Image copyright Getty Images YouTube has denied its content should be regulated in a similar way to traditional broadcasters.Speaking to Newsbeat, i...
    US shutdown: Government services closed as working week begins Image copyright Getty Images Image caption The closure of many federal services and national parks will be felt around the country Hundreds of tho...

    Leave a comment

    Your email address will not be published. Required fields are marked *