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Revenue To Use Private Sector Tax Inspectors

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Revenue to use private sector tax inspectors

Private sector tax experts prepared to switch sides and divulge their know-how to the Revenue have become the latest weapon in its battle against aggressive tax avoidance.

Dave Hartnett, permanent secretary for tax at Revenue & Customs, recently told a group of lawyers that it had learned a lot from recruiting bankers and lawyers who had been made redundant in the credit crunch. He said the Revenue welcomed their knowledge although it did not ask for any information about their past work.

The Revenue has recruited “a small number of tax professionals from the private sector†who have worked for banks, the tax departments of multinationals and, in one case, advising wealthy individuals, according to a report published on Friday by the Paris-based Organisation for Economic Co-operation and Development.

It endorsed the practice, saying when countries “hired from the private sector to improve their anti-avoidance capabilities they have indicated that their overall experience has been positiveâ€.

The OECD study on how to tackle avoidance by rich individuals was carried out by tax authorities in 14 countries, including the UK. The research underscores the threat that governments think is posed to the public finances by the search for loopholes by sectors that are traditionally the biggest contributors to revenues.

The report, which followed a consultation with the private sector, said there was “broad support†for the concept of tax authorities hiring staff from the private sector because it improved the tax authorities’ understanding of the complexities of the tax affairs of rich individuals.

It warned of “potential conflicts of interest and how this might be perceived by the public, particularly if it were seen as the tax administration giving beneficial treatment to the ‘wealthy’â€. But it said the “valuable experience and new thinking†brought by private sector recruits outweighed the cultural challenges.

A drive for closer co-operation with banks and other businesses on tax is also under way, according to Mr Hartnett, who said “about eight or nine†international banks had been willing to share information about their approach to tax planning over the past year. “The relationship with banks is changing,†he said. “The candour we saw from this group about their products is a positive indication.â€

The report also endorsed the Revenue’s practice of forcing tax planners to give the Revenue early sight of their schemes, as a result of the disclosure regime introduced in 2004. It said this had been a “prime source of informationâ€, leading to changes in the law in over half of all cases.

But the Revenue is worried that some lawyers engaged in aggressive planning might try to side-step the rules by devising schemes that do not need to be disclosed.

Eek.

Be afraid for the little guys.

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Or leave the country. If you don't want to pay for Gordon's robbing the taxpayer to pay for the excesses of the scum in the city, leave the country.

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Or leave the country. If you don't want to pay for Gordon's robbing the taxpayer to pay for the excesses of the scum in the city, leave the country.

They'll stop that soon.

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No doubt they'll be billing by the hour (or minute, probably).

What a fantastic gravy train.

"Yes, Mr. Chancellor, it really did take 4,264 hours to investigate Mr. X".

Ching ching.

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Or leave the country. If you don't want to pay for Gordon's robbing the taxpayer to pay for the excesses of the scum in the city, leave the country.

Philip Green paid £1 billion dividend tax free to his wife Tanja (resident of Monaco)

BHS reported that dividend as a loan = 40% tax deduction

Loan financed by the Royal Bank of Scotland

Royal Bank of Scotland financed by idiots around your place

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They'll stop that soon.

Just returned from Berlin and was reminded that they tried that in Eastern Europe for the thick end of half a century and many of those responsible were imprisoned or executed in consequence. I therefore doubt that you are correct Injun.

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Just returned from Berlin and was reminded that they tried that in Eastern Europe for the thick end of half a century and many of those responsible were imprisoned or executed in consequence. I therefore doubt that you are correct Injun.

Err why?

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