HMRC has just announced that two-thirds of the 800 biggest businesses operating in the United Kingdom are under enquiry. According to a press release they have just issued:
Jennie Granger, Director General of Enforcement and Compliance atHMRC, told an HMRC stakeholder conference that most of the enquiries cover multiple issues. Granger said:
“We are enquiring into two out of three of the largest corporations operating in the UK — many of which are multinationals.
“That is not to say that most large businesses are on the make. But it does highlight both the complexity of the international tax system in which they operate and our need to be very actively scrutinising how they negotiate their way through that system.”
The press release added
HMRC's large business strategy has generated £31 billion in additional revenue over the last four years. Large businesses account for a quarter of the £34 billion estimated tax gap, and contribute around 60% of UK tax receipts.
What amazes me is not that two thirds of these businesses are under investigation but that one third are not. Given the complexity of the tax issues they face the idea that two thirds of the largest companies in the UK have not a single corporation tax, PAYE or VAT issue in dispute suggests that HMRC must be really short of resources. I really can't see another likely explanation. And that's very troubling indeed.
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CRMs are working?
Or not
You’re right this is a failure of compliance. Worth looking at NAO reports on enquiries into large corporates. Reducing ‘open issues’ seen as an unalloyed ‘good thing’. Reality is that on big companies scores of significant issues – perhaps worth in the millions or tens of millions – are not being pursued when they should be. When I was a boy working in what’s now the Large Business Service, 2000-2003, any large company would have several matters under enquiry at any point in time. Fact that one third have NO issues, if this is what not being under enquiry means, is incredible – implies vast majority being under-scrutinised.
True, there were a few nit-pickers who wasted time on trivia – but not many. This was used as part of the cover to back off far too far.
Richard
Glad you agree
I find this staggering and I do not believe CRMs solve all problems on the spot
Staggering
If we value it we will pay for it.
Clearly the Government does not value scrutiny of big business nor the tax that would inevitably flow, otherwise it would not hesitate to provide the necessary resource.
Therefore Government is showing that it values large business over the rest of us. Hopefully the price it will pay will be at the ballot box.