New punishments for tax cheats

Date: 23rd February 2011

Small businesses operating in a number of industries across the UK could be encouraged to seek the assistance of a specialist tax accountancy service following a recent government announcement.

HM Revenue & Customs (HMRC) has announced a new line of punishment for organisations seen to be deliberately evading tax payment.

As part of its new Managing Deliberate Defaulters programme, HMRC will place known evaders under increased scrutiny for five years.

The department has already issued hundreds of letters to firms suspected of non-payment informing them that could be placed under increased observation.

David Gauke, exchequer secretary to the Treasury, explained: "Managing Deliberate Defaulters will deter people from evading tax in the future and reassure honest taxpayers that tax evaders will be dealt with.

"This government has made it clear that we will not tolerate people who refuse to pay their fair share and HMRC will pursue those who bend or break the rules."

Posted by Emily Smith