It was a quiet Autumn Statement from the contentious tax perspective but there are a couple of small points of interest.
Managing tax debts: Tax compliance is set to remain in the spotlight as the chancellor pledges additional funding to HMRC to ensure that everyone pays the tax that they owe. As the government faces a real need to increase tax revenue, the additional funding pledged by the government will be used to bolster’s HMRC’s resource to manage and collect tax debts. This will be a critical step in increasing tax yield. HMRC already has a huge array of powers at its disposal identify all forms of tax non-compliance, but has at times been hampered in its efforts to collect what is owed. A distinction must be made between those taxpayers who temporarily, cannot pay the debts owed, with support offered and those who deliberately choose not to pay. HMRC must use its additional funding wisely to pursue those who deliberately refuse to pay, in order to see a real return and to plug the tax gap.
Extension of criminal powers and sanctions: HMRC’s crackdown on perpetrators of tax fraud and those who enable it is set to continue. The government has confirmed it will press ahead with tougher sentences for tax fraudsters, double the maximum prison term to 14 years. This sends an important signal of the government’s stance against tax crime. But this must be backed up by action in order to have a real deterrent effect, with appropriate resource devoted within HMRC to pursuing criminal investigations through to a prosecution.
The hardened minority of promoters of tax avoidance now also risk criminal conviction. This is a welcome step against the few remaining individuals and businesses which continue to sell and welcome aggressive tax avoidance despite formal warnings. Again, to change behaviour, HMRC must make full use of its resource to demonstrate that these new powers are backed up by action.
Home >Articles > Autumn Statement 2023: Contentious tax
Autumn Statement 2023: Contentious tax
It was a quiet Autumn Statement from the contentious tax perspective but there are a couple of small points of interest.
Managing tax debts: Tax compliance is set to remain in the spotlight as the chancellor pledges additional funding to HMRC to ensure that everyone pays the tax that they owe. As the government faces a real need to increase tax revenue, the additional funding pledged by the government will be used to bolster’s HMRC’s resource to manage and collect tax debts. This will be a critical step in increasing tax yield. HMRC already has a huge array of powers at its disposal identify all forms of tax non-compliance, but has at times been hampered in its efforts to collect what is owed. A distinction must be made between those taxpayers who temporarily, cannot pay the debts owed, with support offered and those who deliberately choose not to pay. HMRC must use its additional funding wisely to pursue those who deliberately refuse to pay, in order to see a real return and to plug the tax gap.
Extension of criminal powers and sanctions: HMRC’s crackdown on perpetrators of tax fraud and those who enable it is set to continue. The government has confirmed it will press ahead with tougher sentences for tax fraudsters, double the maximum prison term to 14 years. This sends an important signal of the government’s stance against tax crime. But this must be backed up by action in order to have a real deterrent effect, with appropriate resource devoted within HMRC to pursuing criminal investigations through to a prosecution.
The hardened minority of promoters of tax avoidance now also risk criminal conviction. This is a welcome step against the few remaining individuals and businesses which continue to sell and welcome aggressive tax avoidance despite formal warnings. Again, to change behaviour, HMRC must make full use of its resource to demonstrate that these new powers are backed up by action.
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