Taxman to follow fake insolvencies

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Tax CHEATS who become insolvent to dodge their companies’ tax obligations face up to five years’ scrutiny from HM Revenue and Customs (HMRC).

HMRC is extending close monitoring of the tax affairs of those who deliberately choose not to pay what they owe.

This will include evaders who have received a civil evasion penalty for dishonestly evading VAT; or are required to give a security deposit for VAT, Environmental Taxes, PAYE or NICs; or become deliberately insolvent.

David Gauke, Exchequer Secretary to the Treasury, said: “Evaders are using contrived insolvency to evade tax, either through liquidation of a business or bankruptcy of an individual. Someone who has deliberately tried to evade tax should face extra scrutiny.

Defaulters who fail to keep their tax affairs in order may face criminal proceedings.

More information is at http://www.hmrc.gov.uk/news/tax-defaulters.htm