A taskforce tackling tax dodgers in the haulage industry in the Midlands has been launched in an attempt to recover £3.5m for the Treasury, but an expert at BDO LLP is concerned that even compliant companies could come under scrutiny and urges the government to focus on providing clarity on tax planning.
HMRC launched its taskforces – specialist teams that undertake intensive bursts of activity in specific high-risk sectors – in 2011-2012 and has since recovered £80m from tax dodgers across the country. It looks to bring in another £90m per year during the next three years.
David Gauke, Exchequer Secretary to the Treasury, said the taskforces are there to support hardworking people and will target those that have ‘no intention of playing by the rules’.
Richard Rose, head of tax at BDO LLP in Birmingham, said: “The Government has made it clear that tax evasion will not be tolerated and, via taskforces like this one aimed at hauliers in the region, have provided HMRC with the resources to crack down on those that break the rules.
“HMRC must ensure it undertakes its enquiries in a fair and just manner. It will be unfair for the majority that is compliant with their tax affairs to be erroneously scrutinised to the extent that it disadvantages companies in the short to medium term.
“But the problem the Treasury faces is much bigger than these taskforces suggest. Instead, HMRC should focus its efforts on providing clarity on the definition of what amounts to tax avoidance in contrast to acceptable tax planning. All businesses, big or small, want to pay the right amount of tax, but the overwhelming majority wants to do it within the realms of the law. The problem is that businesses in the region are concerned that their genuine commercial tax planning decisions will be viewed as unacceptable tax avoidance. They need clarity, and quickly.”