TaxCorporate TaxBudget 2003: VAT anti-avoidance study published

Budget 2003: VAT anti-avoidance study published

The chancellor has revealed that the Inland Revenue is to publish a study into anti-avoidance measures for VAT, while launching a new tough enforcement package aimed at bringing in an additional £1.6bn in tax revenues.

Link: Budget special

The move comes amid growing speculation that the Treasury is deeply concerned by the volume of tax avoidance.

The Revenue will employ additional outside expertise to back up legal and IT staff to protect the Exchequer from non-payment of tax and NI contributions.

The new team will also tackle fraud from undeclared income and offshore profits and act to counter avoidance of corporation tax and tax on earnings.

Alastair Kendrick, director at Ernst & Young commented: ‘This is another spend to save initiative, which will produce in these hard times, work for tax advisors as their clients need support from the Inland Revenue’s aggressive approach.

‘The Revenue is clearly going to be charged with a significant additional resource and taxpayers need to be prepared for the knock on the door.

‘It will be interesting to see what approaches the Revenue intends to adopt to meet what are very significant targets.’

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