Taxman launches snitch site
TAX body HM Revenue & Customs (HMRC) has launched a new website to help people snitch on businesses they believe may be dodging tax.
HMRC said it has launched a new facility allowing people to “raise their concerns online” about firms and individuals that might be “cheating the system”.
The push for informants, which comes amid a crackdown on City firms using offshore tax havens to reduce taxes, could lead to a wave of secret whistleblowers raising the alarm on their bosses.
Financial secretary to the Treasury Stephen Timms said the system is confidential: “Reporting your concerns online is quick and easy.”
He said over £42m has been “recovered” as a result of information received directly from the public through the tax man’s telephone service, but HMRC hopes to net much more in dodged revenues.
“We are committed to ensuring the tax system operates fairly and efficiently, and encourage anyone to share their information on activities they think may be unlawful,” he said.
“This is just the latest step in demonstrating that, for tax cheats, the game is up.”
Under its new “behaviourally based” system of penalties, HMRC can now charge penalties of up to 100 per cent for individuals who deliberately evade tax.
Companies face similar penalties. The government has launched a crackdown on tax evasion as the fiscal finances have spiralled out of control during the financial crisis.
It comes as the City gears up for a 50p rate of tax on top earners, which is expected to drive talent fleeing overseas.