It’s important to remember that a tax evader isn’t someone who is claiming back a tax rebate on overpaid tax. HMRC only want to target people who are deliberately trying to avoid paying the tax they rightfully owe.
This year’s government target for HMRC is 1,165 prosecutions for tax evasion. So it’s hardly surprising that the number of property raids undertaken by HMRC has shot up to 600 this year. It is important that HMRC show a return on the £900 million investment in the tax system in 2010, which was designated to resolve the issues of non-compliance with our tax laws during a four year time period.
Over 320 extra staff were employed in HMRC’s criminal investigation unit and the number of raids has increased threefold over the last 3 years. In 2010-11 there were 196 raids, 2013 saw 500 raids, 593 in 2014 and no 600 this year so far.
As reported by Pinsent and Mason, the number of convictions and custodial sentences for tax evasion handed out has also risen by 30%. Paul Noble of the international law firm said, “HMRC is pursuing as many cases as possible in an effort to meet targets set by the government. It is targeting a broad range of taxpayers and refusing to let those suspected of minor offences slip through the net”.
Whilst the commitment to law enforcement is commendable, perhaps netting more big fish would see a bigger return over time?
