The Power Of Tax Is The Power To Destroy
The taxman is once again stepping up its campaign against tax avoidance by issuing a document warning of the risks of entering into contrived schemes. The document warns “anyone tempted to use a tax avoidance scheme should think very carefully about the costs, the disruption caused by having to deal with HMRC enquiries and potentially lengthy litigation”.
Commenting, Gerald Irwin of Sutton Coldfield-based Licensed Insolvency Practitioners and Business Advisers, Irwin Insolvency said, “This leaflet underscores the continuing stance against those who attempt to avoid tax. It is all part and parcel of their strategy to make direct contact with those who have or who are tempted to enter into tax avoidance schemes”.
Indeed, the taxman has been taking a very aggressive stance on tax avoidance schemes where several criminal investigations have been perpetrated citing potential fraud. “This should certainly make people aware of the consequences to utilising tax avoidance schemes where they could face an enquiry and possible litigation,” added Mr. Irwin.
Tax avoidance has soared over the past few years with the so-called ‘tax-gap’ growing to some £35 billion. This is made up of avoidance schemes, illegal tax dodging and mistaken underpayments. The government defines it as the difference between the amount of tax that should, in theory, be collected by Revenue & Customs against what is actually collected.