Debt could be a taxing account
HM Revenue & Customs are trying to nip tax debt in the bud before it reaches court, by seizing payments from householders’ bank accounts.
This new action will prevent evaders from hiding assets prior to a court order. As a result, it will allow the revenue to retrieve tax payments much more rapidly.
In March 2006, over 21 billion pounds remained outstanding in unpaid tax. These new measures will be a short, sharp way to retrieve outstanding tax debt without the lengthy and disruptive process of seeking county court judgements and seizing goods from people’s homes. This new law will also allow tax collectors to secure a claim on someone’s home and recover any outstanding tax debt when the property is sold.
People who are difficult to find will be sought out through estate agents, mobile phone companies and utility firms, who will be forced to disclose personal contact details.
However, there must be safeguards enforced to stop people from being harassed who are refusing to pay tax through a dispute, or who share a house or account.
A similar scheme is already underway in countries such as Australia, Canada, Ireland and France.
Taxpayers have been given a deadline to respond to these plans.
The Revenue has recently given tax evaders the opportunity to come clean and confess to unpaid taxes. They will receive a small penalty of a 10% fine.
A sweeping hunt for over 40,000 other tax evaders is now being strategically pursued by the Revenue.
Finance News posted on 17/09/2007 09:07:24
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