Buried in the documents published as part of the Chancellor’s Budget statement there are a number of announcements around Tax Integrity with the aim to ensure that businesses and individuals pay the right amount of tax.
In his autumn Budget, the Chancellor continued with the ever-increasing move to ensure that businesses pay the right amount of tax. The Chancellor wants to ensure that HMRC has the resources it needs to continue to bear down on tax avoidance and evasion. Overall, HMRC is seeking to ensure it is able to support taxpayers to get their tax right, be able to deliver a secure and efficient customs border and continue to transform itself into one of the most digitally advanced tax authorities in the world.
In particular, it is noted that the following will be introduced to help HMRC combat non-compliance.
Not only are HMRC looking to tackle taxpayers that do not pay and declare the right amount of tax, they are also looking to further clamp down on promoters of tax avoidance schemes. As a consequence, in Finance Bill 2021/22, further measures to clamp down on promoters of tax avoidance will also be introduced. The package of measures, which will take effect following Royal Assent, include:
It will be interesting to see how this evolves over the coming months; as the additional funding for HMRC comes into play and as HMRC starts flexing its muscles over time, getting more resources and becoming more technologically enabled to ensure that tax payers are declaring and paying the right amount of tax.
For more information on how Crowe can help assist you in assessing the robustness of your existing compliance procedures, processes and systems, contact Simon Crookston or visit our dedicated Tax Risk services.
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