A new tax task force is sifting through the financial affairs of wealthy individuals suspected of hiding their money offshore and living luxury lifestyles beyond their means.
HM Revenue & Customs is comparing tax returns of thousands of taxpayers against information collected from financial institutions to look for inconsistencies between declared incomes and spending.
The targets are individuals and businesses in South Buckinghamshire, Berkshire, Dorset, Hampshire, Isle of Wight, Kent, Surrey, Sussex and Wiltshire.
HMRC is expecting to recover more than £2.8 million in lost tax as a result of the investigations.
The task force will visit homes and businesses and demand to see accounts, bank and credit card statements to tie up with receipts, payslips and invoices.
Tackling tax evasion
David Gauke, Exchequer Secretary to the Treasury, said: “The task force is looking for people who are deliberately breaking the law and not declaring their full incomes.
“The government is campaigning against tax evasion because breaking the rules is unfair on those that work hard and pay their dues. These people are cheating the tax system and will not carry on getting away with their actions.”
HMRC has operated 54 taskforces since 2011. Another 16 are starting work before April and 30 more are scheduled for the next tax year.
To date, the task forces have collected more than £100 million in taxes and are forecast to recover a similar amount during the next three years.
Another two task forces also ramped up operations this week tackling tax evasion in the road transport industry in the South-East and VAT avoidance in South Wales, the North East and South West England.
Criminal prosecution
HMRC’s Jennie Granger, Director General of Enforcement and Compliance, said: “The message is simple. Not declaring income is serious and if you do not tell HMRC about your true earnings, we will find out.
“Offenders can expect fines, interest on unpaid tax and in some cases, criminal prosecution.”
HMRC task forces are specialist investigators with access to financial information provided by letting agents, financial institutions, local councils, government departments and agencies like the Land Registry and Department of Work and Pensions.
The investigations are funded by a £900 million cash injection into HMRC aimed at closing the tax gap – the figure between HMRC’s estimated tax due and tax collected. The task forces aim to raise £7 billion in unpaid tax a year by April 2015.
