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HMRC defends payments to informants

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HMRC has paid more than £1m to informants in the last three financial years. ‘Hundreds of people a year have received rewards ranging from about £50 to thousands of pounds, depending on how much tax is recouped as a result of the information provided,’ Exaro News reported.

A Freedom of Information Act disclosure showed that £373,780 was paid out in 2011/12, compared to £155,950 in 2007/08. ‘The increase reflects rising public fury at people who are not paying their fair share of taxes,’ The Sun reported.

An HMRC spokesman said: ‘HMRC has a responsibility to ensure everyone pays the tax that they owe, and clamping down on those who try to cheat the system is a key priority. We value the information we receive from the public through the Tax Evasion Hotline, and all information is analysed and a decision made on the most appropriate course of action.’

The Commissioners for Revenue and Customs Act 2005 s 26 provides that –

‘The Commissioners may pay a reward to a person in return for a service which relates to a function of (a) the Commissioners, or  an officer of Revenue and Customs.’

The payment of rewards by is discretionary and ‘never guaranteed’, HMRC said. A source could be considered eligible for a reward ‘if they provide information that assists HMRC in discharging its duties relating to the detection and prevention of revenue loss’.

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