HMRC's methodology for measuring the tax gap is robust and has been endorsed by the IMF. Contrary to what the PAC report says, the published tax gap does include a measure of the tax lost from avoidance, as well as evasion, but it can only measure non-compliance with existing tax law - it cannot estimate how much tax might be due if tax laws were different. HMRC can only bring in the tax that is due under the law and we cannot collect what is not legally due, however much the Committee might want us to. The Public Accounts Committee already knows that we cannot prosecute multinational companies for activities that are lawful within the international tax framework and has itself acknowledged that the kinds of international tax planning by large businesses that it has reviewed are lawful. We do not hesitate to take large businesses to court if necessary to secure the tax they owe and would consider prosecution in any case where we suspect that we have been misled or information had been withheld from us. We secured eight court wins against large businesses in the first half of this year alone, protecting over £1 billion of tax from avoidance. The Controlled Foreign Companies rules protect the UK from tax avoidance through the artificial diversion of profits by UK groups to subsidiaries in countries with very low rates of tax. The rules were enacted by Parliament after extensive public consultation and Parliamentary debate. In his recent Autumn Statement, the Chancellor announced a proposal to strengthen the Controlled Foreign Company rules, which will be put to Parliament in the 2014 Finance Bill. The Committee's unjustified criticism is not a fair reflection of the dedication of our 65,000 staff, whose work has helped the UK achieve one of the best levels of tax compliance in the world. And it risks undermining the confidence that the compliant majority of UK taxpayers have in the excellent work they do."
High income Child Benefit parents urged to register for Self Assessment
15 January 2014
HMRC is urging high-income Child Benefit parents who have not yet submitted their tax return to take action now, or face penalties.
Parents with incomes above £50,000 who continued to receive Child Benefit after 7 January 2013 have to pay a tax charge. This is based on their incomes and how much Child Benefit they received in the 2012 to 2013 tax year. Those who have already registered must now file a return before 31 January. Those who have neither registered nor opted out must register for Self Assessment Online now, to enable them to send an online return by the 31 January deadline. This is because online registration can take up to seven working days to complete, as HMRC has to send an Activation Code in the post.
The deadline for paying any tax owed for 2012 to 2013 also falls on 31 January.
HMRC Chief Executive Lin Homer said:
“The registration process is easy. We know that many parents are newcomers to Self Assessment, so it is really important they register and file online to avoid getting a penalty.”
To register for Self Assessment online, visit www.hmrc.gov.uk/signup and follow the on- screen instructions. Taxpayers will immediately get a User ID and, once they’ve received an Activation Code, they can activate their account. They can then complete their tax return online.
CIPP Policy News Journal
16/04/2014, Page 172 of 519
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