Large Businesses Tax underpayments increases by 13% to £25bn
As per the recent analysis carried out by the law firm Pinsent Masons, the amount of tax which the HMRC suspects to have been underpaid by large businesses has risen to £24.8bn, an increase of 13% when compared with the previous year.
Pinsent Masons also said that the tax amount which HMRC believes to be underpaid by large scale businesses represents an increase of 31% when compared with the 2014/15 figure of £18.99bn.
The Partner at Pinsent Masons, Heather Self, said that another £3bn related to tax which HMRC is querying about clearly shows that HMRC is widening its scope and are scrutinizing a far wider range of transactions and activities.
Heather self also said that they are now seeing a lot of challenges that would previously have been treated as daily routine and perfectly acceptable.
The figures of HM Revenue and Customs relate basically relate to ‘tax under consideration’, which is actually an estimate of additional tax liability with reference to all enquiries, before full investigations have been completed.
Typically, the additional tax liability tends to be around half the initial estimate after the full investigation gets completed of individual cases.
Self added that the focus on large scale businesses may be due to pressure from the general public to see the large businesses paying their tax liability in full, and the drive for increased revenues.
She further said that HMRC is putting a lot of emphasis on scrutinizing the affairs of more and more companies and as a result increasing the costs of those businesses.
HMRC said that tax under consideration is not tax owed or unpaid, it’s an estimate of what might be at stake if we didn’t investigate. By effectively enforcing the rules HMRC has, since 2010, brought in £53 billion that would have otherwise gone unpaid and collected over £8 billion from large businesses last year alone.
Pinsent Masons also said that the tax amount which HMRC believes to be underpaid by large scale businesses represents an increase of 31% when compared with the 2014/15 figure of £18.99bn.
The Partner at Pinsent Masons, Heather Self, said that another £3bn related to tax which HMRC is querying about clearly shows that HMRC is widening its scope and are scrutinizing a far wider range of transactions and activities.
Heather self also said that they are now seeing a lot of challenges that would previously have been treated as daily routine and perfectly acceptable.
The figures of HM Revenue and Customs relate basically relate to ‘tax under consideration’, which is actually an estimate of additional tax liability with reference to all enquiries, before full investigations have been completed.
Typically, the additional tax liability tends to be around half the initial estimate after the full investigation gets completed of individual cases.
Self added that the focus on large scale businesses may be due to pressure from the general public to see the large businesses paying their tax liability in full, and the drive for increased revenues.
She further said that HMRC is putting a lot of emphasis on scrutinizing the affairs of more and more companies and as a result increasing the costs of those businesses.
HMRC said that tax under consideration is not tax owed or unpaid, it’s an estimate of what might be at stake if we didn’t investigate. By effectively enforcing the rules HMRC has, since 2010, brought in £53 billion that would have otherwise gone unpaid and collected over £8 billion from large businesses last year alone.
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