Businesses could face surprise visits from tax inspectors under new powers proposed in an HM Revenue & Customs consultation document.

The prospoals include allowing officials to enter business premises and examine merchandise and documentation. Private homes could also be included in this space.

The proposals come amid fears that with the merger of Inland Revenue and Customs & Excise, ordinary tax inspectors could be granted the same powers as excise officials prusuing criminal cases.

Advisers downplayed the scope of the consultation, saying that HMRC had acknowledged in the document that safeguards were a priority and that powers needed to be limited and used appropriately.

HMRC has undertaken an ongoing revue of its powers following the the merger.

Further reading:

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