Tax disclosure victory could pave way for red tape nightmare

HMRC building

Businesses could be hit with yet another costly red tape exercise following
HMRC’s successful battle to demand 300 banks hand over details of customers with
offshore accounts.

Lawyers at UHY Hacker Young believe the taxman can now push ahead with plans
to force all companies to disclose customer payment details so it can find out
whether smaller companies are paying the right level of tax, the
Telegraph reported.

In a recent consultation document, HMRC proposed businesses be required to
disclose information in a format the taxman wants and provide deleted data.

Such demands could overburden businesses, and add major costs at a time when
companies are already stretched, believes UHY tax partner Roy Maugham.

Following the claims, HMRC released the following statement:

‘These claims are inaccurate as no decisions have been announced. The Powers
Review has been designed to modernise HMRC’s information powers following the
creation of the department. We have consulted widely with all stakeholders and
we will publish our conclusions in due course.’

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