In its report on the work of HMRC’s High Net Worth Individuals Unit, the public accounts committee has demanded an explanation of falling tax receipts and the department’s ‘dismal record’ in investigating and prosecuting evasion by wealthy taxpayers.
In its report on the work of HMRC’s High Net Worth Individuals Unit, the public accounts committee has demanded an explanation of falling tax receipts and the department’s ‘dismal record’ in investigating and prosecuting evasion by wealthy taxpayers. The report noted that income tax paid by high net worth individuals fell from £4.4bn in 2009/10 to £3.5bn in 2014/15. The PAC has asked HMRC to report back by July 2017 with a formal evaluation of its strategy. The report also recommended that ministers legislate in the next Finance Bill to end abuse of the tax rules on image rights.
The report, Collecting tax from high net worth individuals, makes six main recommendations:
HMRC’s lack of transparency has ‘eroded public trust in a fair tax system’ and the department should publish more information about its work generally alongside its next annual report and at regular intervals thereafter;
HMRC’s approach to dealing with the very wealthy, involves the provision of ‘customer relationship managers’ not available to most other taxpayers. Guidance should be revised to remove any scope for ambiguity about what staff in the HNWI unit can do. The name ‘customer relationship manager’ should be changed to something does not suggest an overly close and inappropriate service to the wealthy;
HMRC has not been tough enough in dealing with tax evasion and avoidance by the very wealthy and should assess, in a report to the committee by July 2017, what more it could do to deter non-compliance, including what new powers might increase its impact;
HMRC should consider requiring these taxpayers to provide information about their assets in tax returns;
the rules on ‘image rights’ as they are applied in football and some other industries are being exploited and the government should include measures in the next Finance Bill to ensure this tax revenue is no longer lost;
HMRC has not yet assessed the strengths and weaknesses of its approach to collecting tax from high net worth individuals and should conduct a formal evaluation of the HNWI unit and monitor the tax receipts from this group of taxpayers.
In its report on the work of HMRC’s High Net Worth Individuals Unit, the public accounts committee has demanded an explanation of falling tax receipts and the department’s ‘dismal record’ in investigating and prosecuting evasion by wealthy taxpayers.
In its report on the work of HMRC’s High Net Worth Individuals Unit, the public accounts committee has demanded an explanation of falling tax receipts and the department’s ‘dismal record’ in investigating and prosecuting evasion by wealthy taxpayers. The report noted that income tax paid by high net worth individuals fell from £4.4bn in 2009/10 to £3.5bn in 2014/15. The PAC has asked HMRC to report back by July 2017 with a formal evaluation of its strategy. The report also recommended that ministers legislate in the next Finance Bill to end abuse of the tax rules on image rights.
The report, Collecting tax from high net worth individuals, makes six main recommendations:
HMRC’s lack of transparency has ‘eroded public trust in a fair tax system’ and the department should publish more information about its work generally alongside its next annual report and at regular intervals thereafter;
HMRC’s approach to dealing with the very wealthy, involves the provision of ‘customer relationship managers’ not available to most other taxpayers. Guidance should be revised to remove any scope for ambiguity about what staff in the HNWI unit can do. The name ‘customer relationship manager’ should be changed to something does not suggest an overly close and inappropriate service to the wealthy;
HMRC has not been tough enough in dealing with tax evasion and avoidance by the very wealthy and should assess, in a report to the committee by July 2017, what more it could do to deter non-compliance, including what new powers might increase its impact;
HMRC should consider requiring these taxpayers to provide information about their assets in tax returns;
the rules on ‘image rights’ as they are applied in football and some other industries are being exploited and the government should include measures in the next Finance Bill to ensure this tax revenue is no longer lost;
HMRC has not yet assessed the strengths and weaknesses of its approach to collecting tax from high net worth individuals and should conduct a formal evaluation of the HNWI unit and monitor the tax receipts from this group of taxpayers.
