Building on their apparent success in combating tax evasion in targeting regional industries, HMRC have recently announced four more task forces. This latest addition brings the total number of active teams to approximately 20 and follows recent operations carried out in May and June which focused on market stall holders in London; property rental businesses in East Anglia, the North East, Yorkshire and London; restaurants across the Midlands and taxi firms in the East Midlands and Yorkshire.
HMRC estimate that they will recover in excess of £30m in revenue from the operations that are targeting:
- Restaurants in South Wales and South West – expected tax take £5m;
- Hair and beauty businesses in Northern Ireland – forecasted tax yield £2.5m;
- Pubs and nightclubs in Scotland – predicted tax yield £5m; and
- Motor trade businesses in North East, Nottinghamshire, South Wales, South West and Yorkshire – expected tax recovery £22m.
The task forces are specialist teams that carry out investigations in concentrated and intense spells into suspected tax evaders across the country. Teams will examine the records of businesses and individuals as well as undertaking other investigations.
HMRC project the total yield from task force activity in 2011-12 to be in the region of £70m but as yet there are no firm figures to support this. To date, the department has officially reported revenues of between £20 – 25m, with detailed results for the majority of the task forces still yet to be published.
In its 2011-12 annual accounts HMRC reported that, from its investigations work as a whole, more than £1BN was recovered. In addition 545 people were charged and 413 people convicted for tax evasion offences.
David Gauke, Exchequer Secretary to the Treasury, said, “Dedicated teams are on track to collect more than £50m from tax avoiders and evaders through the task forces launched last year and expect to collect £30m in unpaid taxes through [new task forces]”.
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