Investigations

Horses’ mobile homes are the latest target for HMRC investigators in their efforts to weed out tax evaders, experts have warned.

The Revenue suspects that some farmers and other rural concerns dishonestly claim luxury horseboxes as business expenses, according to accountancy group UHY Hacker Young, while other countryside firms fail to declare personal use of the vehicles, to dodge tax on benefits in kind.

The government does not plan to give itself powers to significantly alter the direct recovery of debts (DRD) rules by statutory instrument, Taxation has learned, following fears of a legal provision to enable the amendment of primary legislation.

T Lynch (TC4177)

HMRC have launched a consultation on the closure rules for enquiries, to examine the current process and the restrictions it puts on the department in resolving one or more aspects of an enquiry.

The Revenue is seeking views on plans to streamline the system by enabling tax officials to obtain early closure of one or more facets of an enquiry, when it is not appropriate to close the whole matter.

A tax agent who lied to cover up incorrect returns submitted for clients has been convicted of six offences, under the Fraud Act after an investigation by HMRC.

Christopher Jonathan Lunn who worked at his father’s company, Christopher Lunn & Co, sent false invoices to the Revenue to cover up an increase in the amount charged for accountancy fees on behalf of his employer’s clients.

Clients were given one low-cost bill for accountancy services, but they were increased when their accounts were submitted to the taxman.

CG Martin (TC4117)

Changes to direct recovery of debts raise questions about the power’s practicality

Tax experts have applauded the government’s decision to water down controversial plans to give HMRC extra tax debt-collection powers.

Extra safeguards and additional time for consultation on direct recovery of debts (DRD) mean the measure will be delayed until after next year’s general election.

Tax experts back department against PAC report

Do HMRC have a valid reason for an enquiry?

V Tee (TC4089)

A man who pretended to be a solicitor in an attempt to get a sizable debt quashed for another taxpayer has been jailed for 22 months.

Unemployed Nicholas Moss, who pretended to work for a London-based law group, forged a court document that purported to come from a High Court judge cancelling £19,000 in arrears to HMRC.

He also represented his ‘client’ at Willesden County Court, where a judgment was awarded in favour of the Revenue for the tax debt.