HMRC recently have got new powers to raid premises and demand inspections of your firm’s records if it is investigating VAT or contractor tax frauds. Companies could face unlimited fines and be prosecuted and if they fail to spot tax evasion by their supplier.
Oracle Capital Group recommends clients to carry out due diligence on contractors and suppliers, as well as to get to know their responsibilities under “corporate criminal offence” legislation.
New rules apply to the evasion of the UK and foreign taxes and require from companies to maintain a representative position, whose responsibility will be facilitating correct procedures in place to avoid tax evasion. Although there have been no prosecutions under the rules which came into force just two years ago, HMRC uses more and more of its new powers and has several investigations underway. Possible sanctions include loss of government contracts, criminal prosecution of a business and unlimited fines.
Revenue & Customs inspectors are particularly looking for instances of VAT fraud in supply chains and the employment status of contractors. HMRC is going to recover billions of pounds that way.
If your business receives a letter from HMRC expressing concerns that your company could be at risk of involvement in supply chains connected with fraud, that means, that inspector will seek for customer and supplier lists, invoices, contracts and transaction histories, VAT accounts and supplier contracts. HMRC now regularly updates the list of deliberate tax defaulters in the special section of its website.
“Oracle Capital Group closely monitors the regulatory climate in the UK and offers its clients attractive package of accounting services that help to keep correct procedures in place so your UK business will go well and have a sustainable future.”
Director of Accounting
Oracle Capital Group