Inland Revenue catches few 'tiddlers'
A campaign by Inland Revenue to investigate the financial affairs of small businesses and individuals has reaped very little return for the public purse.
A campaign by Inland Revenue to investigate the financial affairs of small businesses and individuals has reaped very little return for the public purse.
Link: Revenue to review S660
Figures revealed in Inland Revenue’s annual report show that the amount of money squeezed out of what business advisors describe as ‘tiddlers’ barely covers the cost of hiring tax investigators to scour their books.
For every £1 spent on tax investigators, just £1.30 was retrieved – a net of 30p for the Chancellor.
According to reports in The Daily Telegraph, Inland Revenue officials say these figures do not show the full picture, because a number of their investigations did reveal larger amounts. For instance, the search for tax evaded by international companies produced a yield of £123 for every £1 spent.
Extra funds are being provided by the Chancellor to help the Revenue focus its efforts on big targets. Over a three-year period it is hoped the extra spend of £181m will yield an additional £3.6bn in tax revenue.