HMRC plans major swoop on tax evaders

In an unprecedented action, HM Revenue & Customs (HMRC) plans to call in expensive City law firms, whose partners charge up to £1000 an hour, to deal with a backlog of more than 1000 cases of tax evasion.

So intent is Dave Hartnett, the HMRC chief, on taking court action against the tax evaders, the in-house Revenue Solicitor’s Office is unable to cope with its workload, The Times reports.

Accountants are concerned that HMRC, in its eagerness to pursue even relatively minor cases, will use City law firms, taking a toll on the public coffers.

‘As a result of that policy change, more disputes now end up in court. It’s no surprise that the Revenue’s new litigious line is hitting its resources,’ Chris Oates, Ernst & Young tax risk management partner, said. ‘The legal department is already under huge pressure and there have been concern.’

Further reading:

Nowhere to hide as taxman steps up tax probe

K taxman closes in on 300 wealthy Britons

Read The Times story