Taxman ups revenue from enquiries

Wilkins Kennedy
found that during the 2005/2006 tax year, inspectors netted an average of £1,629
in extra tax per income and personal tax enquiry, a 35% increase on the previous

Wilkins Kennedy partner Roger Williams said the significant rise in tax take
per enquiry was a result of increased system complexity.

‘The growing complexity of the tax system is leading to more disputed areas
on tax returns, so there is far greater potential for extra tax with every
enquiry,’ Williams said.

The analysis also claimed that financial incentives for inspectors to collect
larger amounts of tax for the Treasury could also have influenced the rise.
Insiders at HMRC hotly contested
the Wilkins Kennedy figures, however.

One source said staff bonuses were not linked to the amount of tax collected,
adding that the Wilkins Kennedy analysis was flawed as tax enquiries varied
radically from one year to another.

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