I see that the state has managed to turn us into a nation of sneaks, as economia reports that calls to HMRC’s tax evasion hotline reached 72,000 tip-offs last year (as per figures from Bloomsbury Professional).
Martin Casimir, managing director of Bloomsbury Professional, said:
The National Audit Office has said that the tax evasion hotline is the least cost-effective method of detecting tax evaders, as it yields just twice the amount of money it costs to operate it.
Martin Casimir noted:
Therefore we should ask is this the most effective use of HMRC's resources?“The sheer volume of calls to the hotline is astounding. People are clearly keen to ensure that no-one cheats the tax system and that everybody pay their fair share of tax."However, quantity does not always equal quality; as Mr Caimir went on to say:
“HMRC is already on a stretched budget.Additionally questions need to be raised over whether these calls actually identify genuine tax evasion, or are merely being used by people who are either confused about the difference between evasion and avoidance or who simply have a petty grudge against someone.
There’s a question mark over whether HMRC has the manpower to deal with all the complaints that it receives.”
The National Audit Office has said that the tax evasion hotline is the least cost-effective method of detecting tax evaders, as it yields just twice the amount of money it costs to operate it.
Martin Casimir noted:
“HMRC should be concerned about how few calls actually reveal a tax evasion case of note. Whilst people are now more sensitive to the possibilities of any tax irregularities, it can lead to people being over-keen and making calls that are misguided.
It’s a rarity that calls to HMRC reveal a large-scale evasion of tax. Many of the calls relate to tradesmen being asked to be paid cash-in-hand, for example. The loss of tax for HMRC is rather small.”
Calls to HMRC’s tax evasion hotline reached 72,000 tip-offs last year, according to figures from Bloomsbury Professional
The tax and accounting group has calculated that this equals
roughly 300 calls a day to the service, which allows members of the
public or businesses to tell HMRC about suspected cases of tax evasion.
Martin Casimir, managing director of Bloomsbury Professional, said, “The sheer volume of calls to the hotline is astounding. People are clearly keen to ensure that no-one cheats the tax system and that everybody pay their fair share of tax."
However, Caimir warned that the high levels of calls will not necessarily lead to more investigations, and more amounts of unpaid tax collected.
“HMRC is already on a stretched budget,” he said. “There’s a question mark over whether HMRC has the manpower to deal with all the complaints that it receives.”
HMRC did not disclose figures to show how many of the calls it receives lead to investigations into tax evasion.
However, spending watchdog the National Audit Office has said that the tax evasion hotline is the least cost-effective method of detecting tax evaders, warning it yields just twice the amount of money it costs to operate it.
Martin Casimir concluded, “HMRC should be concerned about how few calls actually reveal a tax evasion case of note. Whilst people are now more sensitive to the possibilities of any tax irregularities, it can lead to people being over-keen and making calls that are misguided.”
“It’s a rarity that calls to HMRC reveal a large-scale evasion of tax. Many of the calls relate to tradesmen being asked to be paid cash-in-hand, for example. The loss of tax for HMRC is rather small.”
- See more at: http://economia.icaew.com/news/june2013/tax-evasion-hotline-soars-to-72000-calls#sthash.BpBcyE4W.dpufMartin Casimir, managing director of Bloomsbury Professional, said, “The sheer volume of calls to the hotline is astounding. People are clearly keen to ensure that no-one cheats the tax system and that everybody pay their fair share of tax."
However, Caimir warned that the high levels of calls will not necessarily lead to more investigations, and more amounts of unpaid tax collected.
“HMRC is already on a stretched budget,” he said. “There’s a question mark over whether HMRC has the manpower to deal with all the complaints that it receives.”
HMRC did not disclose figures to show how many of the calls it receives lead to investigations into tax evasion.
However, spending watchdog the National Audit Office has said that the tax evasion hotline is the least cost-effective method of detecting tax evaders, warning it yields just twice the amount of money it costs to operate it.
Martin Casimir concluded, “HMRC should be concerned about how few calls actually reveal a tax evasion case of note. Whilst people are now more sensitive to the possibilities of any tax irregularities, it can lead to people being over-keen and making calls that are misguided.”
“It’s a rarity that calls to HMRC reveal a large-scale evasion of tax. Many of the calls relate to tradesmen being asked to be paid cash-in-hand, for example. The loss of tax for HMRC is rather small.”
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It is indeed a big achievement by the state to turn our nation into a bunch of tell tale tits and grasses in just one generation.
ReplyDeleteNo great surprise that some people consider it wrong to report the immoral actions of others. The same people, perhaps that demand perfect public services but expect the payment of such to be plucked from the ether.
ReplyDeleteWhat is actually wrong, in one-to-two generations, is the fact that it is actually considered okay to not pay tax or claim groundless benefits.
Perhaps if people took more responsibility for their own actions rather than expecting free rides off those of us that pay taxes the country wouldn't have suck a lack of pots to piss in?
I don't think any right thinking person would consider it morally right to not pay the tax which the law says they have to.
DeleteWhat is wrong, is for the state to turn people against each other with grass lines for this and grass lines for that. It is called divide and rule and is how despots have kept their citizens in line: A divided nation is far easier to control compared to a united nation.
I also feel that is wrong to assume that just because someone questions the right of the state to pitch citizen against citizen, they must therefore be either tax evaders or benefit recipients or benefit cheats.
So, in summary; People should pay the tax that is due.
Government should set rates that are reasonable, so that people don't feel they're being ripped off inorder to fund ego feeding, political projects.
If politicians feel that tax is being avoided, they should change the rules; after all it is their game and their rules which they can and do change on a whim.
If tax rates are unfair, as percieved by the population, then people are less likely to happily pay tax and both illegal evasion and legal avoidance will increase.
People should indeed take more responsibility for themselves and their families but to do that, the state needs to stop micro-managing everyone's lives.
Politicians are the last people that can talk about morality let alone try to take the moral high ground on any issue.
Tonk, quite so re turning people against each other.
DeleteVisit the occupation museum in Jersey and read some of the nasty, spiteful, vindictive letters that were sent to the occupying Gestapo by local residents reporting their neighbours for all sorts of imagined "crimes".
Oh, come on, Ken. Making a comparison like that is beneath you.
DeleteClearly, what's driving the increase in calls is primarily all the media attention tax abuse has been getting. (The Government's lies about bankrupt Britain and egregious exaggerations about benefits fraud probably contribute, to be fair.)
Meanwhile, the points raised about cost effectiveness seem to be based on a very narrow analysis. As well as simply looking at the cost of running the hotline vs the direct intervention yield resulting from its tip-offs, one has to bear in mind that the mere presence of such a line has two (admittedly unquantifiable) spin-off benefits: it's a deterrent for those who might otherwise evade and it helps to increase what little faith there is in the tax system, thereby increasing engagement among people who wouldn't evade but might, for example, take less care with their tax affairs.
Well, that's the theory. No doubt many here will set out cogent reasons why I'm wrong (or just call me a shill). Put it like this, though, Ken: if there wasn't a tip-off line, I've no doubt that you (who purports to believe that evasion is wrong and should be challenged) would have a field-day saying that there should be one!
Stew G
Criminal Justice standards plus Humint and Data Protection issues should have given HMRC a bit of a headache as every bit of info should have to be provenanced, assessed, recorded in an approved database and any chance of identity e.g. name, telephone number etc sanitised before the information can be used.
ReplyDeleteGetting knickers in a twist following some critical HMIC reports and the good old London City Bond type disasters will have them twitching - or not as the case may be.
This should give cause for concern as the HMRC track record across legal responsibilities let alone good practice guidelines is about as broken as the average railway timetable is reliable - fragmentated at best.
Perhaps it is once more time again to have HMIC look at these issues and how HMRC handles low level information, with or without joining the dots, but thats another story and issue for HMIC.
If it's any help, it's sanitised to the extent it's almost useless.
ReplyDelete