Detailed enquiries on corporation tax returns have secured an extra £602m in
annual revenues for the government, according to the National Audit Office.
In a thorough survey of HM Revenue & Customs’ collection of the tax, the
watchdog said that ‘since 1999, when Corporation Tax Self Assessment was first
introduced, there has been a 42% increase in the extra revenue secured by area
offices from their detailed enquiries on tax returns, giving a total of £602m in
extra revenue for 2004-05.’
Collection of the tax was still patchy, however, the NAO said, with some area
offices better than others.
Sir John Bourn, head of the NAO, said: ‘I welcome the improvement in the
Department’s management of Corporation Tax over the last five years, which has
led to higher tax yields from fewer formal enquiries, bringing benefits to the
Department and company taxpayers alike.
‘My report highlights how HM Revenue & Customs can build on these
achievements, by deploying its staff to focus its work on tax returns that pose
the greatest risk, while helping companies to meet their obligations.’
To read the report, click on the following link:
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