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Now taxman gets the power to turn up unannounced to your home and demand to see tax records (U.K.)
The Daily Mail (U.K.) ^ | March 14, 2008 | BECKY BARROW

Posted on 03/14/2008 12:10:19 AM PDT by Stoat

Now the taxman gets the power to turn up unannounced to your home and demand to see tax records

By BECKY BARROW - More by this author » Last updated at 01:10am on 14th March 2008

 

couple at house door

Tax inspectors will be allowed to come to your front door under new powers to come into force next year. Posed by model

Inspectors will be allowed to make lightning visits to taxpayers' homes, under powers due to come into force next year.

 

Under the extraordinary new rules, they will be able to turn up unannounced and demand to see tax records.

They will not just target big business but could hit any taxpayer if they suspect money is owed, whatever the amount.

"No tax evader should get away with it," one accountant said.

"But you don't want a knock on the door at 4am if you are a good, upstanding taxpayer, do you?"

Evidence emerged yesterday of the staggering tax dodging which is rife in Britain.

Documents, released by Revenue and Customs while all eyes were on the Budget, reveal up to £41billion is lost.

This translates to a cost of more than £1,600 each to every household in Britain.

 

Tax bosses did not want to release the controversial figures, but were forced to publish them on their website under the Freedom of Information Act.

The 52-page document shows it estimates between £10billion and £41billion was lost through tax avoidance (the legal practice of using loopholes in tax legislation) and evasion (illegally avoiding paying tax) between 2000 and 2005.

This is known as the "tax gap" - the difference between the amount of tax owed and the amount of tax paid.

It only relates to "direct taxes", such as income tax, national insurance, stamp duty, capital gains tax and corporation tax.

Yesterday, Revenue and Customs insisted it had only been reluctant to publish the information because it was "unreliable" and "highly problematic due to lack of data".

The analysis, done in 2005, suggests up to £23.4billion alone was lost on income tax, capital gains tax and national insurance.

The publication of the document was sensitive because it is believed to be the first- ever official analysis of the "tax gap".

The gap - a figure which is impossible to pin down - is one reason why Revenue and Customs wants stronger powers to inspect tax records.

Tax chiefs have been pushing for the new rules since the Inland Revenue merged with Customs & Excise in 2005.

After a long consultation, the new rules will come into force on 1 April next year.

Armed with their new powers, tax inspectors will be able to make "unannounced" visits to a person's home if they are suspected of failing to pay all their taxes.

The new laws are aimed at "business premises" only, but inspectors will be able to raid a private home if it is used for "business purposes".

This includes millions of the self- employed and small traders whose business is registered at their home address.

At present, a tax inspector has to provide strong evidence of criminal activity and persuade a judge or magistrate to issue a search warrant.

But, under the new rules, they will not need a search warrant - or any evidence of criminal activity.

They will require only the permission of a senior Revenue and Customs officer - and a suspicion that there is an unpaid tax liability.

The taxpayer can refuse to let the tax inspector enter his office, or home, but could face a stiff penalty for doing so.

John Whiting, a tax partner at the accountants Pricewaterhouse Coopers, said it is vital for safeguards to be put in place to protect innocent taxpayers.

"They must do everything they can do tackle fraudsters, but they must balance that with not hassling innocent people who are just trying to do their jobs and pay their taxes," he said.

Revenue and Customs insists the majority of visits will be prearranged with the taxpayer.

If successful, the new powers will raise even more money from British taxpayers, already forking out record sums.

During the current tax year, they are expected to pay nearly £250billion in income tax and national insurance, equal to £7,790 per taxpayer.

Gary Ashford, director of tax investigations at the accountants Grant Thornton, stressed the need for safeguards.

"They must make sure that it is not some bully boy tax inspector turning up alone on people's doorsteps."


TOPICS: Business/Economy; Government; News/Current Events; United Kingdom
KEYWORDS: bigbrother; bigbruv; britain; england; greatbritain; surpriseinspections; taxation; taxes; thetaxmancometh; uk; unitedkingdom; yourpapersplease
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Also:

FT.com - In depth - Revenue seeks powers for surprise visits

The Press Association Extra powers plan for tax officials

BBC NEWS Business More powers for the Revenue

Taxman wins right to carry out surprise inspections - Times Online

1 posted on 03/14/2008 12:10:21 AM PDT by Stoat
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To: ancient_geezer

Ping


2 posted on 03/14/2008 12:15:01 AM PDT by Stoat (Rice / Coulter 2012: Smart Ladies for a Strong America)
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To: Stoat

I’d like to see them do that in the U.S. This is just the reason why we’ve got a Second Amendment.


3 posted on 03/14/2008 12:15:55 AM PDT by Mr Ramsbotham (Laws against sodomy are honored in the breech.)
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To: Stoat

So much for the Magna Carta! Goodbye, Britain!


4 posted on 03/14/2008 12:18:06 AM PDT by SWAMPSNIPER (THE SECOND AMENDMENT, A MATTER OF FACT, NOT A MATTER OF OPINION)
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To: Stoat

Is’nt socialism grand!

Worry not my dear heart. The IRS will double
it’s army of auditors these next few years.

Gotta keep up with those sophistos in Europe.


5 posted on 03/14/2008 12:19:32 AM PDT by ChiMark
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To: Stoat

6 posted on 03/14/2008 12:24:47 AM PDT by BlueDragon (come on and sing it children (He's a stranger in a strange land) Whoa, sing it one more time)
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To: Mr Ramsbotham
I’d like to see them do that in the U.S. This is just the reason why we’ve got a Second Amendment.

I'm guessing that it wouldn't even get to the point of tax assessors getting shot on peoples' doorsteps....if something like this were even to be seriously suggested in the USA, cities would burn.  The rioting would be Biblical in proportion....it would never get the point of the tax assessors going out to actually do this, as they would be cowering in their cubicles, watching the cataclysm on CNN.

At present, a tax inspector has to provide strong evidence of criminal activity and persuade a judge or magistrate to issue a search warrant.

But, under the new rules, they will not need a search warrant - or any evidence of criminal activity.

They will require only the permission of a senior Revenue and Customs officer - and a suspicion that there is an unpaid tax liability.

The taxpayer can refuse to let the tax inspector enter his office, or home, but could face a stiff penalty for doing so.

7 posted on 03/14/2008 12:27:24 AM PDT by Stoat (Rice / Coulter 2012: Smart Ladies for a Strong America)
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To: Stoat
Documents, released by Revenue and Customs while all eyes were on the Budget, reveal up to £41billion is lost. This translates to a cost of more than £1,600 each to every household in Britain.

Documents, released by Revenue and Customs while all eyes were on the Budget, reveal up to £41billion is lost. This translates to a saving of more than £1,600 each to every household in Britain.

8 posted on 03/14/2008 12:33:05 AM PDT by Arthur McGowan
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To: Tax-chick

tax ping


9 posted on 03/14/2008 12:33:27 AM PDT by Stoat (Rice / Coulter 2012: Smart Ladies for a Strong America)
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To: ChiMark

How is it that the same country that produces so many heroes, as we see in Afghanistan and Iraq, can also produce an army of thugs and bullies for the IRS?


10 posted on 03/14/2008 12:36:44 AM PDT by Arthur McGowan
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To: Stoat
Now taxman gets the power to turn up unannounced to your home and demand to see tax records

Taxman won't go to the dangerous neighborhoods.

11 posted on 03/14/2008 12:38:34 AM PDT by perfect stranger (Nobama)
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To: Stoat
BBC-CNN HEADLINE 2010 -

"48th Missing Tax Inspector Found Dead in River Thames" - MI5 Remain Baffled at Cause

OTHER HEADLINES -

"Costume Shops Sell Out of Guy Fawkes Masks"

"Spice Girls Reunite....Again!"

12 posted on 03/14/2008 12:50:13 AM PDT by BossLady ("People will do anything, no matter how absurd, in order to avoid facing their own soul" - Carl Jung)
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To: Stoat
"one for you, nineteen for me, .....'cause I'm the tax man..."

Turns out the Beatles were prophetic.

That crap could cause a lot of job openings over here.

13 posted on 03/14/2008 2:30:45 AM PDT by Smokin' Joe (How often God must weep at humans' folly.)
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To: Stoat

Silly. The tighter they squeeze, the more money slips through their fingers.

If the tax bills weren’t so high, then people wouldn’t feel the need to dodge so much.


14 posted on 03/14/2008 2:32:17 AM PDT by Vanders9
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To: Mr Ramsbotham

You’ll live to see it.


15 posted on 03/14/2008 2:32:51 AM PDT by Vanders9
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To: Arthur McGowan

Because being a tax imspector is far less dangerous and much better paid than being a hero (who would probably be under investigation for “unneccesary use of force” or “aiding hate crimes”.


16 posted on 03/14/2008 2:35:06 AM PDT by Vanders9
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To: perfect stranger

which, of course, are the ones that are dodging taxation.


17 posted on 03/14/2008 2:36:08 AM PDT by Vanders9
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To: Vanders9

“If you try to sit, I’ll tax your seat.”

“If you take a walk, I’ll tax the street.”

“If you get too cold, I’ll tax the heat.”

“Cause I’m the Tax Man.”...........Yea .....a....I’m the Tax Man, and you’re working for no one but me.......(written by John Lennon)


18 posted on 03/14/2008 2:56:23 AM PDT by PSYCHO-FREEP (Juan McCain....Viva El Presidente! "I'm not prejudice, I hate everybody the same.")
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To: Stoat

I can just see the IRS trying this in say, South Philly, or maybe Anacostia in DC...

IRS agent knocks on door:

Voice inside: ‘who dat?’

IRS agent: ‘Internal Revenue Service’

Voice: ‘whutchu want maaan?’

IRS agent: ‘I’m looking for Jamal Isaiah Mohammed, I need to see his tax records’

Voice: ‘Ain’t nobody here’

IRS agent: ‘Who are you?’

Voice: ‘I’m the dude gonna put a cap in yo azz if you don’t get da f—k outta here!’

IRS agent: ‘Are you threatening a federal official?’

Voice: ‘You know it muthaf-—ker, keep standin’ there, I gots sumpthin fo ya! [click]’

IRS agent: ‘I’ll be going now, thanks for your help, have a nice day’

Voice: ‘Don’t lemme catch you here agin!’


19 posted on 03/14/2008 3:00:15 AM PDT by mkjessup (This year's presidential choices: "Speak No Evil, See No Evil, and Evil")
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To: Stoat

First they took away the guns.


20 posted on 03/14/2008 3:32:52 AM PDT by Leftism is Mentally Deranged (Fascism is wrong even if it's practiced by the government)
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