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Thirty new taskforces to tackle tax evasion

News Release issued by the COI News Distribution Service on 23 February 2012

Thirty new taskforces to crack down on tax dodgers will be launched by HM Revenue & Customs (HMRC) in 2012/13.

The taskforces will target specific business sectors in specific locations where there is evidence of tax evasion. The likely targets include:

the rag tradethe motor tradeindoor and outdoor markets.

HMRC expects to collect over £50m as a result of 12 taskforces launched in 2011/12 and, with 13 criminal investigations under way, this figure is set to rise.

HMRC will also extend some of the taskforces from 2011 to different locations, including the scrap metal taskforce launched in Scotland in November.

The Exchequer Secretary to the Treasury, David Gauke, said:

“The Government is committed to tackling tax evasion and avoidance. HMRC’s taskforces are cracking down on people who choose to break the rules and creating a level playing field for the majority who play by them.

“It is completely unacceptable, at a time when we are trying to bring down the deficit that, while most hard-working people pay the right tax, there are others who try to get out of contributing their fair share. HMRC has received lots of useful information on its evasion hotlines, which shows that the honest majority are quite rightly fed up with the dishonest minority.”

HMRC’s Director of Local Compliance, Richard Summersgill, said:

“Taskforces only target people who are at high risk of breaking the rules and don’t pay the tax they owe. We know we’re going after the right people – some taskforces have hit rates of 100 per cent so far.

“Only those who choose to break the rules, or deliberately evade the tax they should be paying, will be targeted. If you deliberately seek to evade tax, HMRC can and will track you down, and you’ll face not only a heavy fine, but possibly a criminal prosecution as well.”

Taskforces come as a result of the Government’s £917m spending review investment to tackle tax evasion, avoidance and fraud from 2011/12, which aims to raise an additional £7bn each year by 2014/15.

If you are aware of someone who is evading their taxes you can tell HMRC via the Tax Evasion Hotline on 0800 788 887, via email or by post. Full details can be found at www.hmrc.gov.uk

Notes for editors

Taskforces are part of HMRC’s broader work to tackle evasion and avoidance, including campaigns and offshore penalties.

Compliance activity through taskforces targets the highest-risk cases in that sector and location, typically focusing on groups of up to around 600 customers in specific locations.

Full details on all 2012/13 taskforces will be announced later in the year.

The rag trade taskforce is concerned with the import, wholesale, marketing and sale of clothing.

Taskforce	Launch date	Results
London restaurants	May 2011	Expected yield: £5m A large number of cases being worked have identified significant levels of sales suppression using varying investigative techniques.
North West restaurants	May 2011	Expected yield: £4.5m Three cases adopted by Criminal Investigations
Scotland restaurants	June 2011	Expected yield: £4m Four cases adopted by Criminal Investigations
London fast food franchise	July 2011	Total yield to date: £10m Further £8m expected 100 per cent hit rate – with the average c£190k per business.
London fraudulent repayments	Nov 2011	Expected yield: £4.5m Three cases adopted by Criminal Investigations
North West landlords	Nov 2011	Expected to find a high proportion of ghosts and refer for criminal/civil action. Three cases adopted by Criminal Investigations.
North West construction	Nov 2011	Yield expected: £3m
Scotland scrap metal	Nov 2011	Yield expected: £3m
Scotland hot food takeaway	Nov 2011	Yield expected £6m Indicators show evasion by 75 per cent in the selected population.
London - property transactions	Launched in Dec 2011	Yield expectation £7M
South East Overdue Returns	Launched Nov 2011	Yield expectation £2.5M

Follow HMRC on Twitter @HMRCgovuk

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Contacts:

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jonathan.hall@hmrc.gsi.gov.uk

Sara Pont
Phone: 020 7147 0394
sara.pont@hmrc.gsi.gov.uk

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