Richard Clarke and Jennifer Knowlson discuss what information HMRC has access to and how it uses it
Tax returns
The obvious way in which HMRC obtains information is of course from the tax returns and supporting documentation supplied to it by the taxpayer in question. There are over 32 million income taxpayers around 1 million corporation tax payers 25 000 inheritance tax accounts 2 million VAT-registered traders plus around 1.6 million operators who pay Air Passenger Duty Landfill Tax the Climate Change Levy or the Aggregates Levy. But from the millions of statutory returns of every variety sent to HMRC every year one obvious challenge is how to process this wealth of data to decide which returns require further investigation. There may be glaring entries such as DOTAS (disclosure of tax avoidance schemes) numbers (these are automatically flagged for enquiry)...
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Richard Clarke and Jennifer Knowlson discuss what information HMRC has access to and how it uses it
Tax returns
The obvious way in which HMRC obtains information is of course from the tax returns and supporting documentation supplied to it by the taxpayer in question. There are over 32 million income taxpayers around 1 million corporation tax payers 25 000 inheritance tax accounts 2 million VAT-registered traders plus around 1.6 million operators who pay Air Passenger Duty Landfill Tax the Climate Change Levy or the Aggregates Levy. But from the millions of statutory returns of every variety sent to HMRC every year one obvious challenge is how to process this wealth of data to decide which returns require further investigation. There may be glaring entries such as DOTAS (disclosure of tax avoidance schemes) numbers (these are automatically flagged for enquiry)...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
