THE MAJORITY of tax-dodging arrangements are not caught by the taxman through the disclosure of tax avoidance schemes (DOTAS), according to HM Revenue & Customs’ director-general.
HMRC director-general Jim Harra told MPs more than half of avoidance arrangements are not detected by its own dedicated preventative regime.
He said: “46% of avoidance is caught by the disclosure regime and has to be paid to us.”
The taxman also has alternative methods of finding out about tax avoidance, including market intelligence, he said.
The Public Accounts Committee, chaired by Labour MP Margaret Hodge (pictured), has been especially critical of HMRC’s performance in its battle against avoidance.
Yesterday, she said: “They [tax avoidance scheme providers] run rings round [HMRC]. I was surprised at how appallingly bad the record [in tackling avoidance schemes] was.
“It really shook me that there have only been 11 cases taken to tribunal for non-disclosure since 2004. It’s just gob-smacking. It’s enormous. There’s billions at stake.”
Harra added: “In the last two years, we have had 60 schemes in the tribunals, and 51 have been ruled in our favour.”
Crowe Clark Whitehill , the top 20 accountancy firm, has announced the promotion of Chris Mould to partner
The latest opinions from Accountancy Age on Making Tax Digital, and outline plans to evolve the UK's corporate governance regime
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said
UK-based non-doms have paid ten times more tax than the average taxpayer, raising concerns over the Brexit impact on non-dom contributions and therefore, the economy