HMRC investigates the UK’s wealthy on suspicion of tax avoidance

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HMRC is investigating the UK’s most rich on the Island on suspicions of avoiding taxes that amount to 1.9 billion pounds ($2.6 billion).

The UK’s HMRC special unit has began to investigate the country’s most richest individuals including the top three most rich people in the United Kingdom on suspicion of tax avoidance. According to a spokesperson for the National Audit Office the 6500 individuals whose tax cases are being inspected, have payed a very small part of their taxes. The National audit has estimated the total amount of these non-payed levies amounts to 1.9 billion pounds ($2.6 billion).

The Audit Office also added that around 1.1 billion of these non-payed taxes have more than likely disappeared in tax avoidance schemes, which are fairly common among the rich. According to experts around 15% of the rich have at least once taken advantage of such a scheme.

Many of these levy eluding tactics are in fact legal such as the creation of an offshore bank account or transferring money to confidential funds. Most of the time the rich use these methods in order to better manage their investment portfolios or to protect their assets. However tactics like these can also help them to avoid paying taxes by using these same loops in the laws.

In order to prevent such abuses of the laws that in 2009 the UK’s National Audit Office created a special unit, the HMRC, in order to monitor the fortunes of those who are wealthy as well as their tax cases. A step that has proven to be effective as it was able to recover 416 million pounds of non-payed levy in 2015

About the Author

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Viliyana Filipova
My name is Viliyana Filipova and I’m working as content writer and analyst of Business News Feeds Journal. I'm writing about finance statements, business analyze and employment for Central and Eastern Europe, Russia and Middle East.

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