Vol 19 (2022) - Issue 2

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The Evolving Powers of HMRC

Synopsis
In March 2020, the Chancellor announced the government's intention to create a 'tax system fit for the challenges and opportunities of the 21st century.'
HMRC's role in pursuing tax avoiders and evaders is as important as ever. The most recent estimate of the tax gap was £35 billion. It is suspected that 8.7% of the Coronavirus Job Retention Scheme ('CJRS'), and 8.5% of the Eat Out to Help Out scheme alone were lost to fraud or error.
The Revenue is being forced to adapt. As schemes and fraud mutate, so Parliament adds new weapons to HMRC's armoury. A new taskforce has been created, HMRC has been given unprecedented powers to gather information and to enlist corporates to act as lookouts, and the courts have also recognised the Revenue's power to issue taxpayer notices extra-territorially. Whether or not the enlargement of HMRC's powers will reap rewards, remains to be seen.