1/29/2016 2010to2015governmentpolicy:taxevasionandavoidanceGOV.

UK

GOV.UK
HMRevenue
&Customs(https://www.gov.uk/government/organisations/hmrevenuecustoms)
HMTreasury(https://www.gov.uk/government/organisations/hmtreasury)

SeemoreinformationaboutthisPolicypaper(https://www.gov.uk/government/publications/2010to2015governmentpolicytaxevasion
andavoidance)

Policypaper
2010to2015governmentpolicy:taxevasionandavoidance
Updated8May2015

Contents
Issue
Actions
Background
Appendix1:taxavoidanceandevasionanddevelopingcountries
Appendix2:makingiteasiertofindoutwhoownsacompany
Appendix3:minimisingthehiddeneconomy
Appendix4:tacklingalcoholfraud
Appendix5:preventingtaxevasion
Appendix6:HMRCspublicitycampaignagainsttaxevasion
Appendix7:dealingwiththetaxaffairsofwealthyindividuals
Appendix8:criminalinvestigations
Appendix9:HMRCCampaigns

Thisisacopyofadocumentthatstatedapolicyofthe2010to2015ConservativeandLiberalDemocratcoalition
government.ThepreviousURLofthispagewashttps://www.gov.uk/government/policies/reducingtaxevasionand
avoidance(https://www.gov.uk/government/policies/reducingtaxevasionandavoidance) .Currentpoliciescanbefoundatthe
GOV.UKpolicieslist(https://www.gov.uk/government/policies) .

Issue
ThevastmajorityofUKindividualsandbusinessespaythetaxthatisdue.However,thereisasmallminoritywhodont.

Thisimposesanunfairburdenonthehonestmajorityandpreventsmoneyfromreachingthecrucialpublicservicesthatneedit.
Wewanttostoppeoplecheatingthetaxsystemandcollectmoreofwhatsowed.

ThedifferencebetweentherevenuesthatinHMRevenueandCustoms(HMRC)viewshouldcomein,andthetotalactually
collectedbyHMRC,isknownasthetaxgap.Taxevasionandtaxavoidancebybusinessesandindividualscontributetothe
taxgap,alongwitherror,failuretotakereasonablecare,nonpayment,legalinterpretation,thehiddeneconomyandcriminal
attacksonthetaxsystem.

Thetaxgapinthe2010to2011financialyearwasestimatedtobe32billion6.7%ofthetotaltaxthatHMRCestimateswas
dueandtaxevasionandavoidancetogetheraccountedfor9billionofthis.

Actions
Weareworkingtopreventevasionandavoidance,detectingitearlywhereitarises,andcounteractingiteffectivelythrough
investigationandlegalchallenge.

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1/29/2016 2010to2015governmentpolicy:taxevasionandavoidanceGOV.UK
WeareinvestinginHMRCtopreventtaxavoidanceandevasion.In2010thegovernmentallocatedHMRC917millionfrom
efficiencysavingstoreinvestingeneratingadditionalcompliancerevenuesof7billionayearby2015.

IntheChancellors2012AutumnStatement(http://www.hmtreasury.gov.uk/as2012_index.htm) ,HMRCreceivedafurther77million
forspecificadditionalprojectsaimedatreducingevasionandavoidance.

AttheG8summitinJune2013(https://www.gov.uk/government/topicalevents/g82013) weannouncedstepstowardsachieving
greaterinternationaltaxtransparencytopreventoffshoretaxavoidanceandevasion.

Givingpeopleopportunitiestodeclarewhattheyowe
WearerunningcampaignstoencouragepeopletotellHMRCwhattheyowe(https://www.gov.uk/government/policies/reducingtax
evasionandavoidance/supportingpages/hmrccampaigns) ,beforewetrackthemdown.Sofar,HMRChasraised610millionfrom
voluntarydisclosures,andalmost395millionfromalargenumberoffollowupactivities.

Prosecutingmorepeoplewhobreakthelaw
HMRCistakingswifterlegalactionagainstthosewhodontcomeforwardandsortouttheirtaxes.Wearealsoallocatingmore
resourcestoincreasethepaceandnumberoftaxevasioncasesbeingbroughtbeforethecriminalandcivilcourts.

Wearesettinguplocaltaskforcestoidentifyanddealwithtaxcheats,usingcriminalandcivilpowers.

Weareprosecutingmorepeoplewhobreakthelawbyevadingtax.Wehaverecruitedanadditional200criminalinvestigators
toincreasethenumberofpeopleprosecutedfortaxevasionfrom165in2010to2011,to565in2012to2013,andto1,165in
2014to2015.

Preventingavoidancebylargemultinationalcorporations
Somemultinationalbusinessesavoidpayingsometaxesbyshiftingprofitsawayfromthelocationwheretheactivitiescreating
thoseprofitstakeplacethisisalsoknownasbaseerosionandprofitshifting(http://www.oecd.org/tax/beps.htm) (BEPS).

Theinternationalcorporatetaxstandardshavestruggledtokeeppacewithchangesinglobalbusinesspractices,withan
increasingshareoftradetakingplaceonline.Internationaltaxstandardshaveremainedlargelyunchangedforoverahundred
yearsandnowneedtobeupdatedtopreventgapsfrombeingexploited.

AttheG20meetingoffinanceministersinFebruary2013,ChancelloroftheExchequerGeorgeOsbornewelcomedtheinitial
reportbytheinternationalOrganisationforEconomicCooperationandDevelopment(http://www.oecd.org/unitedkingdom/) (OECD)
onaddressingBEPSasafirststepfordealingwithprofitshiftingbymultinationalcorporations.

AttheG8summitinJune2013(https://www.gov.uk/government/topicalevents/g82013) ,G8leaderscalledontheOECDtodrawupa
templateforglobalcorporationstoreporttotaxauthoritiesonwheretheymaketheirprofitsandpaytaxesaroundtheworld.This
willgivetaxauthoritiesaroundtheworldanewtoolagainsttaxavoidancebymultinationals.

Alongsidetheseefforts,wearealsorecruitingmorepeopletospeedupHMRCsworktoidentifyrisksrelatingtolarge
businesses.ThiswillhelptomakesurethatmultinationalsfullydeclaretheirUKprofitsandpaythetaxdueintheUK.

Preventingavoidanceandevasionbywealthyindividuals
WeareexpandingHMRCsAffluentUnit,with100extrainvestigatorsandextrariskandintelligencestafftoidentifyanddeal
withavoidanceandevasionbythewealthiestindividuals.

Weareincreasingthenumberofspecialistpersonaltaxinspectorstopreventevasionandavoidanceofinheritancetax,using
offshoretrusts,bankaccountsandotherentities.Thesespecialistswillconcentrateinparticularontheagentsandtax
intermediariesinvolvedintheseactivities.

Increasingourabilitytoidentifyoffshoretaxevasionandavoidance
Weareworkingmorecloselywithothertaxadministrationstopreventoffshoreevasion.

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1/29/2016 2010to2015governmentpolicy:taxevasionandavoidanceGOV.UK
AttheG8SummitinJune2013(https://www.gov.uk/government/topicalevents/g82013) ,theUKreachedamajornewagreementwith
G8memberstates(https://www.gov.uk/government/news/g82013actionagreedoninternationaltaxissues) tomovetoestablishthe
automaticexchangeofinformationbetweentaxauthorities.G8countriesagreedtoworkwiththeOECDtodevelopamodelfor
this.

ThisbuildsonthepriorcommitmentmadebyFrance,Germany,Italy,SpainandtheUKtopilottheautomaticexchangeoftax
information(https://www.gov.uk/government/news/g5fatcaagreementstrengthensukabilitytotackletaxevasion) .Thisinitiativehassince
beenjoinedby12otherEUMemberStatesandMexicoandNorway.

TheUKCrownDependenciesandOverseasTerritories(Guernsey,theIsleofMan,Jersey,theCaymanIslands,Anguilla,
Bermuda,theBritishVirginIslands,Montserrat,GibraltarandtheTurksandCaicosIslands)havealsojoinedthisinitiative
(https://www.gov.uk/government/news/chancellorwelcomeshugestepforwardinglobalfightagainsttaxevasion) ,agreeingtoautomatically
exchangeinformationaboutaccountsheldinthosejurisdictionswiththeUKandothers.

WehavealsosetupanewcentreofexcellencewithinHMRCtobringtogetherandenhanceourexpertiseindealingwith
offshoreevasion.TheteamwilllookathowHMRCcanbestusedatatoidentifyoffshoretaxevasion.

Usingdataandnewtechnology
Weareinvestinginourabilitytousedataandnewandadvancedtechnologytoidentifyfraudandevasionrisks.Wehave
alreadybroughtinanextra1.4billionoftaxrevenuebyinvesting45millionintheseactivities.

WeareimprovingHMRCsCONNECTanalyticalcomputersystem,sothatthedepartmentisbetterabletoidentifyareasof
compliancerisk.ThiswillallowHMRCtoactswiftlyinidentifyingandinvestigatingfraudulentbehaviour.

Dealingwithtaxavoidanceschemes
Wearedesigninglegislationthatminimisesthescopefortaxavoidance.

ThegovernmenthasintroducedaGeneralAntiAbuseRule(GAAR),aimedatdeterringandpreventingartificialandabusivetax
avoidanceschemes.

Wewillalsointroducenewmeasurestodealwithtaxadviserswhosellcontrivedandaggressivetaxavoidanceschemes.The
governmenthasannounceditwillconsultonproposalstointroducesignificantnewinformationdisclosureandpenaltypowers,
tomakeitmoredifficultforthepromotersofabusiveschemestocontinuetomarkettheminthefuture.

Weareusingsettlementopportunitiestoencourageusersofavoidanceschemestoagreetheirtaxpositionwithus,and
investinginadditionalresourcetoacceleratelitigationforthosewhodonotsettle.

Wearemakingbetteruseofantiavoidancecommunicationstoinfluencethebehaviouroftaxpayersandpromotersof
avoidanceschemes.Wearealsoimprovingthequalityofinformationavailableonavoidancetohelptaxpayersrealisethe
potentialdownsidesandrisks.

Background
The2010documentTheCoalition:ourprogrammeforgovernment(https://www.gov.uk/government/publications/thecoalition
documentation) statedthatthegovernmentwillmakeeveryefforttopreventtaxavoidance.

AspartofBudget2011(http://webarchive.nationalarchives.gov.uk/20130129110402/http://www.hmtreasury.gov.uk/2011budget.htm) the
governmentpublishedTacklingtaxavoidance(http://webarchive.nationalarchives.gov.uk/20130129110402/http://www.hm
treasury.gov.uk/2011budget_taxavoidance.htm) whichsetoutourantiavoidancestrategy.The3principlesare:

preventingavoidanceattheoutset
detectingitearlywhereitpersists
counteractingitthroughlegislativechangeandchallengethroughlitigation

AtBudget2012(PDF)(http://webarchive.nationalarchives.gov.uk/20130129110402/http://www.hm
treasury.gov.uk/d/gaar_study_supp_report_250612.pdf) weannouncednewguidanceontheGeneralAntiAbuseRule(GAAR),
followingrecommendationsfromareportintotaxavoidance(PDF)
https://www.gov.uk/government/publications/2010to2015governmentpolicytaxevasionandavoidance/2010to2015governmentpolicytaxevasionanda 3/16
1/29/2016 2010to2015governmentpolicy:taxevasionandavoidanceGOV.UK

(http://webarchive.nationalarchives.gov.uk/20130321041222/http://www.hmtreasury.gov.uk/d/gaar_final_report_111111.pdf) ledbyGraham
Aaronsonin2011.TheguidancewillcomeintoaffectwiththeFinanceAct2013,duetobepublishedinsummer2013.

InhisDecember2012AutumnStatement(http://www.hmtreasury.gov.uk/as2012_index.htm) ,theChancelloroftheExchequersaid:
Therearestilltoomanypeoplewhoillegallyevadetheirtaxes,oruseaggressivetaxavoidanceinordernottopaytheirfair
shareandsetoutthegovernmentscommitmenttotakingactionagainstthesepeople.

InDecember2012wepublishedClosinginontaxevasion:HMRCsapproach
(http://webarchive.nationalarchives.gov.uk/20140109143644/http://www.hmrc.gov.uk/budgetupdates/march2012/taxevasionreport.pdf) ,which
setsoutourapproachtotaxevasioninmoredetail,concentratingparticularlyonhowwewillusethirdpartydata.

Inthe2013Budget,HMRCpublishedthereportLevellingthetaxplayingfield(https://www.gov.uk/government/publications/levelling
thetaxplayingfield) whichhighlightedthesuccessesHMRChashadintacklingavoidance,evasion,criminalattackanddebt
since2010.HMRCalsopublisheditsoffshoreevasionstrategyNosafehavens(https://www.gov.uk/government/publications/nosafe
havens) whichsetsoutHMRCsapproachtotacklingoffshoreevasion.

AttheG20meetingoffinanceministersinJuly2013,ChancelloroftheExchequerGeorgeOsbornewelcomedtheOECDBEPS
actionplantoaddressprofitshiftingbymultinationalcorporations.Theactionplanincludes15specificproposals,whichwillbe
takenforwardoverthenexttwoyears.

In2011to2012HMRCbroughtinarecord16.7billionofadditionalrevenuesfromcomplianceactivities.HMRCalsoprotected
2.5billionofrevenuebypreventingorganisedcriminalattacks,anddefendantswereconvictedin85%ofcriminalcasestaken
tocourt.

Thedifferencebetweentaxavoidanceandevasion
TaxavoidanceisbendingtherulesofthetaxsystemtogainataxadvantagethatParliamentneverintended.Itofteninvolves
contrived,artificialtransactionsthatservelittleornopurposeotherthantoproduceataxadvantage.Itinvolvesoperatingwithin
theletterbutnotthespiritofthelaw.Taxevasioniswhenpeopleorbusinessesdeliberatelydonotpaythetaxesthatthey
oweanditisillegal.

Appendix1:taxavoidanceandevasionanddevelopingcountries

Thiswasasupportingdetailpageofthemainpolicydocument.

Taxavoidanceandevasionisparticularlyanissueindevelopingcountriesastheymaynothavethecapacityandresourcesto
collectthetaxwhichtheyareowed.

InMay2013weannouncedanewcapacitybuildingprogramme(https://www.gov.uk/government/news/ukgovernmenttoassist
tanzaniaandethiopiaintaxcollection) ,theDevelopingCountriesCapacityBuildingUnit,tosetupprojectsworkingwithEthiopia
andTanzaniainpartnershiptostrengthentheirtaxadministration.TheunitisfundedbytheDepartmentforInternational
Development(DIFD)andrunbyHMRC.

ThroughthenewprogrammesHMRCandtheTanzanianandEthiopianauthoritieswillworktogethertotailorHMRCbest
practicetotheinfrastructureandresourcesavailabletohelpthesecountriesinordertostrengthentheirtaxadministrations.This
couldbeinareassuchastaxinspectortraining,improvingtherevenueauthorityswebsite,developingacomplaintshandling
process,orbringinginariskmanagementsystem.

Since2010therehasbeenanannual40%increaseinrevenuecollectioninEthiopia,supportedbythefirstphaseofHMRCs
partnershipwiththeEthiopianauthorities.

Appendix2:makingiteasiertofindoutwhoownsacompany

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1/29/2016 2010to2015governmentpolicy:taxevasionandavoidanceGOV.UK

Thiswasasupportingdetailpageofthemainpolicydocument.

Beneficialownershipisatermusedtodescribewhoultimatelyownsacompany.Asmallminorityofbusinessesmakeit
extremelyhardtounderstandwhoultimatelyownsandbenefitsfromabusiness,usingcomplexcompanystructurestoconceal
theinformationneededtocollecttax.

AheadoftheG8summitthattheUKheldinJune2013,weannouncednewrulestobringinfurthertransparencyonwhom
ultimatelyownsandcontrolscompanies.

ThisinformationistobeheldinacentralregistrymaintainedbyCompaniesHouse
(https://www.gov.uk/government/organisations/companieshouse) ,whereitwillbeaccessibletolawenforcementagenciesandtax
authorities.

G8leadersalsoagreedtopublishactionplansonthis,toensurethatthisisconsideredinternationallytoointheglobalfight
againsttaxevasionandavoidance.

Thisactionwillmakeithardertolaundermoney,evadeandavoidtax,financeterrorism,bribeofficials,hidestolenassetsand
evadefinancialsanctions.Taxauthoritieswillbeabletoseewhoownseverycompanytocollectthetaxthattheyareowed.

Appendix3:minimisingthehiddeneconomy

Thiswasasupportingdetailpageofthemainpolicydocument.

Mostpeoplepaythetaxtheyowe,butasmallminorityworkinwhatwecallthehiddeneconomy.Theirincomeisnotdeclared
fortaxpurposesworkinglikethis,perhapsforcashinhand,isreferredtoasthehiddeneconomy.Theymaybeunknownto
HMRC,orregisteredaspayingtaxonsomeincome,buthavefurtherhiddenincomesources.

Ourresearchsuggeststhatpeoplesattitudesandbehaviourscanbeaffectedbyanychangestotheirstandardofliving:

peoplearefindingnewwaystoboosthouseholdincome,andaremorereluctanttodeclareitfortax
customersareseekinggooddealstosavemoney,andbusinessesoftenfeeltheyhelpcustomersbyofferingcheaper(tax
free)prices
peoplewhodevelopamoneyspinninghobbyarelesslikelytocallitabusiness,orbelievetheyarenotearningenoughto
makeitworthdeclaring

Whatwearedoing
HMRCaimtochangethebehaviourofpeopletemptedintothehiddeneconomyby:

supportingnewbusinesseswitheducationalguidanceandtoolstohelpthempaytherighttax,andworkingwithcolleges
andetradingsitestotailortuitiontopeoplesneeds
makingiteasierforpeopletopaythetaxtheyoweforexample,throughprovidingnewonlineservicesandintroducinga
simplerincometaxsystemforsmallbusinesses
identifyingthoseoutsidethetaxsystemthroughmatchingdetailswehold,suchasusingpropertydatatodetectundeclared
rentsfromlandlords
helpingpeopletocomeforwardtovoluntarilydiscloseincomethroughcampaigns,wherewefocusontargetingaspecific
typeofworkoroccupation,whiletakingatougherapproachtobusinesseswhorefusetodoso
usingtaskforcestotargetspecificareas,suchaslocationorsector,wherepeopledonotcomplywithtaxrules.Weare
expectingtorecovermorethan3millionthroughtheeffortsofourteamsentrecentlytoinvestigatethehiddeneconomyin
thesecondhandmotortradeintheMidlands.Weareaimingforafurther3millionbyprobinghiddenwealthinthesame
arealookingatpeoplewithoffshoreaccountsandthoselivinglifestylesbeyondtheirobviousmeans,throughincomethat
wesuspectisundeclared

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1/29/2016 2010to2015governmentpolicy:taxevasionandavoidanceGOV.UK

Uncoveringsecretearnings
Taxweareowedthathasnotbeenpaidmakesupthetaxgap.TheGovernmentisinvestingalmost1billiontoclosethegap
asnoncomplianceputsanextraburdenonthehonestmajority,whilemakingitharderforregisteredbusinessestocompete.

Weestimatethetaxgaptobeabout35billion,with5.4billionor15%duetothehiddeneconomy.

HMRCsworkpaysoff
HMRChavemorethan600staffinourspecialisthiddeneconomyteamswhoidentifythosewhoshouldbepayingmoretax,
workingwithwidercomplianceteams,aidedbyriskandintelligenceexperts
HMRCinvestigatedmorethan19,300peoplesuspectedofworkinginthehiddeneconomyinthetaxyear2012to2013as
aresultwerecoveredmorethan160millionintax
HMRCissuednearly1,400penaltiesinthetaxyear2012to2013fordeliberatetaxevasioninthehiddeneconomy
wesecuredalmost2.5millionwithhelpfromtheUKBorderAgencyfrompeopleexploitingillegalworkers.HMRCnow
workwithBorderForcetotacklethisissue

HMRCarealsoworkingwithotherstounmaskthehiddeneconomyincluding:

TradingStandards,theVehicleandOperatorServicesAgencyandtheDepartmentforWorkandPensionstoidentify
uninsureddriversandbenefitcheats
localauthoritiesandHomeOfficeimmigrationenforcementtoinvestigateexploitationofmigrantworkersandmultiple
occupationofhouses
Londonboroughsandpolicetotackleroguelandlordschargingcashinhandrentsandexploitingvulnerablepeopleliving
insubstandardorunsafehomes

LegislationintroducedinSeptember2013meansHMRCcanusedatafromcreditanddebitcardcompaniesonsalesmadeby
retailers,tocrosscheckagainsttheirVATregistrationsandbusinessincomedeclaredontaxreturns.

YoucanreportsuspiciousearningsviatheHMRCwebsite(http://www.hmrc.gov.uk/taxevasion/hotline.htm) .

Appendix4:tacklingalcoholfraud

Thiswasasupportingdetailpageofthemainpolicydocument.

Alcoholdutyfraudisbigbusinessandcoststaxpayersaround1billionayear.Theproblemhasgrownsincetheintroductionof
theEuropeanSingleMarketin1993.Wearenottalkingaboutpeoplesneakinginafewcasesintheirvanorcar.Thesedayswe
seecriminalgangsmastermindingthesaleofillegaldrinkthroughvariousoutlets.

TheyexploittheEUruleswhichallowgoodsusuallyliableforexcisedutytomovebetweenwarehouseswithdutyunpaiduntil
releasedfordrinkingintheUK.Falsedocumentsarecommonlyusedtosellillicitconsignmentsofalcoholtowholesalers,cash
andcarryfirms,smallretailersandtheleisuresector.Thisundercutsthelegitimatesuppliers.

Whatwearedoing
AlcoholdutyfraudisoneofthelargesttaxcrimesintheUKandHMRevenue&Customsstaffareworkinghardtoreducethe
amountoffraudcommitted.Ourworkwillbehelpedbytheintroductionofaregistrationschemeforwholesalersthisyear,which
wasannouncedbytheGovernmentintheDecember2013AutumnStatement.

Theschemewillincreaseourabilitytoremoveillicitalcoholfromthemarketbecausewholesalerswillhavetobeapprovedby
HMRC,beforetheystarttrading.

HMRCarealso:

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1/29/2016 2010to2015governmentpolicy:taxevasionandavoidanceGOV.UK
workingwiththenewNationalCrimeAgencyandBorderForceinourcriminalinvestigationsandgatheringinformationon
suspectedscamsandcriminals
usingresponsesfromarecentpublicconsultationtomakeadecisiononmeasurestoclampdownonalcoholfraud.It
followsasimilarexercisein2012andlooksspecificallyatplanstomakeregisteredexcisetraderstakemoreresponsibilityto
preventfraud
settingupajointalcoholantifraudtaskforcecomprisingstakeholders,includingBorderForce,TradingStandards,trade
representatives,andseniorfiguresfromthealcoholindustry
dealingmorerobustlywiththosefoundholdingormovingillicitgoods
furthertighteningouralcoholpolicyanddomesticregulationstoreduceopportunitiesforfraud
increasingcooperationwithotherEUmemberstatesonfraud
continuingtopressforchangestotheEUlegalframeworktopreventthecurrentabuseoftheEUwidedutysuspension
system

Oursuccessintacklingdrinksfraud
HelpedbyBorderForce,HMRChave:

protectedmorethan600millioninrevenuethroughenforcementinthetaxyear2012to2013
seized12.7millionlitresofalcohol,worth25million
recovered130millionoflosttaxes
leviedmorethan52millioninpenalties

Someofthescamsuncovered
ThreemenwerejailedinJune2013fortryingtoevademorethan4.7millionintaxusingcounterfeitlabels.Attheirhome,
thousandsoflitresofalcoholwereseizedincludingcarrierbagscontaining45,000incash.

Oneofthebiggestsmugglingfraudswasworth50millionayearinunpaiddutyandVAT.Thecasein2012sawagangleader
jailedfortenyearsandthreeothersgetatotalof12years.TheirscamoperatedfromanEssexwarehouse.Theyboughtbeer,
wineandspiritsfrombondedwarehousesinFrance,importeditdutyfree,andsolditonwithoutduty.

ThreemenwhomadepotentiallylethalfakevodkausingindustrialalcoholwerejailedinJanuary2013.Theillegalplanthadthe
potentialtocostalmost500,000inlostrevenue.Thevodkawasfoundtohavedangerouslevelsofmethanolwhichisusedin
antifreeze.

Illicitbeer
Itisestimatedthatbetweensixand13%ofthebeerwedrinkisillicitthatmeans550millionofpotentialtaxislosteveryyear.
About28,000lorryloadsofbeerareestimatedtobesmuggledacrosstheUKbordereachyeartoandfrommainlandEurope.
Everylorryloadcannetthecriminalsinvolvedaprofitofaround18,000.Atypicallorryloadofillicitbeerwouldcheatthe
Exchequeroutofabout20,000inexcisedutyandVAT,basedona40footvehiclecarrying20,000litres,in440mlcansat4%
strengthofalcoholbyvolume.

Safeguardingspirits
Wearemakingiteasierforconsumershereandabroadtoidentifygenuineproducts.TheSpiritDrinksVerificationScheme,
whichcameintoeffecton10January,isdesignedtoprotectthereputationandauthenticityofspiritdrinksproducedintheUK,
fromaspecificgeographicallocation.

WearestartingbycheckingtheprocessesinvolvedintheproductionofScotchwhisky.Wewillthenpublishalistofverified
businessesanditems,suchascompanylabels.

Scotchwhiskyaccountsforabout25%oftheUKstotalfoodanddrinkexports.Itsexportvaluewas4.3billionin2012.

Appendix5:preventingtaxevasion

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1/29/2016 2010to2015governmentpolicy:taxevasionandavoidanceGOV.UK

Thiswasasupportingdetailpageofthemainpolicydocument.

Taxevasioniswherethereisadeliberateattemptnottopaythetaxdue.Itisillegal.WhilethevastmajorityofUKtaxpayers
declarealltheirincomeandpaythetaxtheyowe,asmallnumberchoosetobreaktherules.TheaimofHMRevenue&
Customsisnotonlytomakesurepeoplepaytherightamountoftax,buttoensurethattheydonotgainanunfairadvantageby
evadingtheirtax.

Whatwearedoing
Ourgoalistopreventtaxevasionbymakingiteasiertocomplywiththetaxrulesandtoencouragepeopletomeettheir
obligationsvoluntarily.

Weuseanintelligenceandriskledapproachtoidentifyandtackleevasion.

Ourresponseisdrivenbythebehaviourwefindthemoreentrenchedthenoncompliance,themorerobustourresponse.

Ourhightechanalysissystem,Connect,combinedwithaccesstoawiderangeofdatasources,allowsustoidentifyevasionat
thetouchofabutton.

Weuseavarietyoftoolsfromfinancialpenaltiesandcivillitigationthroughtocriminalprosecutionagainstpeoplewho
deliberatelyevadepayingtheirtax.

Weaimtochangethebehaviourofknownevadersthroughintensescrutinyoftheirtaxaffairsandthethreatoftougheractionif
theybreaktherulesagain.

HMRCworkalsoincludes:

settingupmorethan60regionaltaskforcesacrosstheUKsinceMay2011.Theyareaimedathighrisksectors,suchas
illegalalcoholandtobaccosales.Ourtaskforcesbroughtinmorethan96million,andresultedin80casesforcriminal
investigation
apublicitycampaignwhichincreasestheperceptionthatpeoplewillbecaughtiftheyevadetheirtaxes.Forexample,using
billboardsandradioadvertsacrosstheUKtocarryourmessagethatweareclosinginonundeclaredincome.Weare
followingthatupwithanewwaveofpublicitytoreinforceourpositionthatwearetougherthaneveronevasion
publiclynamingdeliberatedefaulters.Wepublishalistofpeoplewhohaveincurredapenaltyfordeliberatelygivingus
inaccuratedocumentsorfailingtocomplywithourrules,wherethereismorethan25,000oftaxatrisk
placingknowntaxevadersundercloserscrutinyforfiveyearsbyourMonitoringSeriousDefaultersteam

Investment
HMRCweregivenmorethan150millionofadditionalinvestmentbytheGovernmentintheDecember2013Autumn
Statement,tospendoverthenextthreeyears.Thisinvestmentwillbeusedtocontinuetotackletaxavoidanceandevasion,as
wellasreducefraud,erroranddebtinthetaxcreditssystem.Ourworkhasalsobeenbolsteredbyarangeofnewmeasures
coveringoffshoreevasionandtradinginillicitgoods.

Theimpactofevasion
Thetaxgap,whichisthedifferencebetweenwhatwecollectandthetaxthatistheoreticallyowed,was35billioninthetax
year2011to2012,or7%oftotaltaxliabilities.

Taxevasionaccountedfor5.1billion,thehiddeneconomyaccountedfor5.4billionandcriminalactivity4.7billionofthetax
gap.

Nearlyhalfthetaxgap,47.7%,isdowntononpaymentbysmallandmediumsizedenterprises(SMEs),andwhilemuchofthis
isduetoerror,thereisasignificantriskofevasionamongasmallminorityofSMEs,whichwearetackling.

HMRCworksofar:

https://www.gov.uk/government/publications/2010to2015governmentpolicytaxevasionandavoidance/2010to2015governmentpolicytaxevasionanda 8/16
1/29/2016 2010to2015governmentpolicy:taxevasionandavoidanceGOV.UK

HMRCcriminalinvestigationsteamsbroughtinmorethan1billioninreceiptsandthroughpreventingrevenuelossinthe
taxyear2012to2013
540peoplewereconvictedoftaxevasioninthetaxyear2012to2013.Thisactsasastrongdeterrenttootherstemptedto
evade,andwecheckifourworkishavingthedesiredeffectontaxpayersthroughresearchandsurveys
weareontargettobringatleast1,165taxfraudprosecutionsinthetaxyear2014to2015,upfrom165in2010to2011
wehavemorethan3,500casesunderscrutinyinourManagingSeriousDefaultersprogramme
weissuedmorethan5,000penaltiesin201213fordeliberaterulebreaking
ourConnectsystemholdsmoreinformationthantheBritishLibraryandhasalreadymade4billionconnectionsacross
customerrecords

Wearealso:

usingcampaignstopersuadespecifictradesandprofessionsvialetters,advertsandsocialmediatosettletheirtaxes
voluntarily,takingswiftactionagainstthosewhodonot.Weraised4millioninonecampaignaimedatpeopletradingin
onlinemarketplaces
tacklingtheuseofinsolvencytoevadetax
makingoffshoreinformationexchangedealswithothercountrieswheresometaxevadersmighthidetheirmoney

Appendix6:HMRCspublicitycampaignagainsttaxevasion

Thiswasasupportingdetailpageofthemainpolicydocument.

HMRClaunchedanationalpublicitycampaign(https://www.gov.uk/sortmytax) inNovember2012aimedatchangingthebehaviour
ofpeoplewhobreaktherulesontaxoraretemptedtobreaktherules.

Usingbillboards,postersontelephonekiosksandbusshelters,andradioandonlineadverts,thiscampaignwaslaunchedto
raiseawarenessamongthosebreakingtherulesthatHMRCisclosinginonundeclaredincome.

Theaimofthecampaignistoencouragepeoplewhoarenotpayingtherightamountoftaxtodeclaretheirunpaidtax
voluntarilyandpayit.Thecampaignsupportsourexistingcomplianceactivitiesandistargetedatanybodywhohasundeclared
income,whichincludesalljobsectorsandprofessions,andallofourcustomergroups,includingthosewhopaynotaxatall.

Specificcampaignswhichwerunhavebeeneffectiveinpersuadingpeoplewithinthosetargetgroupstoputtheirtaxaffairsin
order,complementingourinvestigationandenforcementactivities.

InFebruary2014,theChancellorlaunchedanewphaseofthecampaign(https://www.gov.uk/government/news/hmrccampaign
targetsoffshoreaccountholdersinfreshclampdownontaxevasion) ,targetingtaxpayerswithmoneyhiddeninoffshoreaccounts.

Appendix7:dealingwiththetaxaffairsofwealthyindividuals

Thiswasasupportingdetailpageofthemainpolicydocument.

Wealthypeopleoftenhavecomplextaxaffairs,soweusespecialistteamstomakesuretheypaythetaxtheyowe.

Thereareabout6,200individualsintheUKwhoeachhave20millionormoreinnetassets.Overall,thisgrouppays3to4
billioninincometaxandCapitalGainsTaxinayear.Thatswhyitsimportanttheycomplywiththeirtaxobligations,andthatwe
challengethosewhodontalwaysplaybytherules.

Whatweredoing
WevebeenimprovingthewaywehandlethetaxaffairsofthewealthiestindividualsaftersettingupourHighNetWorthUnitin
2009.
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1/29/2016 2010to2015governmentpolicy:taxevasionandavoidanceGOV.UK

Itshelpingustobringinextracompliancerevenueeveryyear,aswemaximisetheamountoftaxwecollectfromthisparticular
groupoftaxpayers.

Sofar,wevecollectedmorethan1billioninadditionalrevenuesincetheunitwasformed.Thisisagainstatargetof894
million.

Webroughtinadditionalrevenueof268millionin2013to2014,whichwasa20%increaseontheyearbefore.

Wedstartedbycollectinganextra85millioninrevenue,duringthefirstyearofoperationfortheHighNetWorthUnit,in2009
to2010.

Wehavealso:

reducedthenumberofoutstandingtaxreturnsfrom11.9%to3.4%infiveyears
increasedthenumberofwealthyindividualsfilingonlineto96.4%in2013to2014whichisanincreaseof10%infouryears

Wehavemorethan400specialistsinourHighNetWorthUnitdealingwiththetaxaffairsofwealthyindividuals.

Eachpersonwedealwithhastheirowncustomerrelationshipmanager,sotheyarefullyawareoftheirtaxresponsibilities.

Themanagerdealscloselywiththeiradvisersandtaxagents.Thisrelationshiphelpspreventtaxavoidanceandevasion,by
allowingustodevelopabetterunderstandingofthetaxaffairsofpeoplewithhighnetassets.

Wealthyindividualswhoweconsidertobefullycompliantwiththeirtaxobligationsarealsosentanearlycertaintyletter
explainingthatwewontbecarryingoutextrachecksontheirtaxreturn.

Dealingwithavoidanceandevasion
Wealthyindividualswhoaresuspectedofavoidanceandevasionaredealtwithinexactlythesamewayasanyoneelsetrying
tocheatthetaxsystem.We:

tellpeopletheyarebeinginvestigatedmoreclosely
challengeindividualswhentheymissataxdeadlineordeliberatelysendinwhatwebelieveisanincorrecttaxreturn
issueacceleratedpaymentnoticessothatthedisputedamountoftaxinanavoidanceschemeispaidupfronttoHMRC
whilethedisputeisresolved
trytosettletaxdisputesquicklyandfairly,sometimesusingtaxtribunals
takelegalactioninthecourtsifourcivilpowersandpenaltiesdonothavethedesiredeffect

HowtheHighNetWorthUnitworks
Teamsofspecialisttechnicaladviserssupportcustomerrelationshipmanagersincaseswherecomplexissuesneedamorein
depthanalysisoftaxlaw.Thisensuresweareevenhandedinsolvingdisputes.Italsohelpsustosettledifficultargumentsina
waythatmeetsourcustomerservicestandardsandcodeofgovernance.

Theunitalsohasanumberofspecialistteams:

financeforindividualsconnectedtosectorssuchasinvestmentfunds,privatefinancingschemesorequitiesandbanking
organisations
risingstarsdealingwiththosewhosewealthisincreasingveryquickly,andwhomightbecomehighnetworthindividuals
inthenextfewyears
BusinessInvestmentTaxReliefhandlingclaimsforpeoplenotlivingintheUKwhowanttoinvestinUKbusinesses
analysisandintelligencegatheringandanalysinginformationonanindividualsbehaviour,sowecanbetterunderstand
theirinterestsandfinancialresourcesandinvestments

Whatwearedoingnext
In2014to2015wereaimingtocollectatleast225millioninadditionaltaxrevenue.Welldothisby:

continuingtoworkcloselywithwealthyindividualsandtheiradviserstoreducetheriskoftaxavoidanceandevasion

https://www.gov.uk/government/publications/2010to2015governmentpolicytaxevasionandavoidance/2010to2015governmentpolicytaxevasionand 10/16
1/29/2016 2010to2015governmentpolicy:taxevasionandavoidanceGOV.UK

respondingrobustlytotheminorityofpeoplewhocheatthesystem

Appendix8:criminalinvestigations

Thiswasasupportingdetailpageofthemainpolicydocument.

Attheextremeendoftaxevasionactivity,organisedcriminalgangsmakesophisticatedattacksonthetaxsystemitselfby
makingfalseclaimstorepaymentsoftaxcreditsonamassivescale.Itsessentialthatthiscriminalelementisinvestigatedand
prosecuted.

HMRCisresponsibleforinvestigatingcrimeinvolvingallofthetaxesandotherregimesitdealswith.Itisntresponsiblefor
criminalprosecutions.

Thedecisionwhethertobringacriminalprosecutionismadebyanindependentprosecutingauthority.InEnglandandWales
thisistheCrownProsecutionService(http://www.cps.gov.uk/) .InNorthernIrelanditisthePublicProsecutionServiceforNorthern
Ireland(http://www.ppsni.gov.uk/) .InScotlanditistheCrownOfficeandProcuratorFiscalService(http://www.crownoffice.gov.uk/) .

TheHMRCCriminalInvestigationPolicy(http://www.hmrc.gov.uk/prosecutions/criminvpolicy.htm) givesmoredetailonhowandwhya
criminal,ratherthancivil,investigationisinitiated.

HMRCscriminalinvestigationpowers
TocounterthesophisticatedcriminalattacksontheUKtaxsystem,HMRCneedssimilarcriminalinvestigationpowerstothose
thatotherlawenforcementagencieshave.Inparticularhasthepowerto:

applyforordersrequiringinformationtobeproducedproductionorders
applyforsearchwarrants
makearrests
searchsuspectsandpremisesfollowingarrest

Thesepowersarestrictlygovernedbylegislation,andonlytrainedmembersofstaffareauthorisedtousethesepowers.

HMRCscriminalinvestigationactivityisalsooverseenbyHMInspectorsofConstabulary,theScottishandNorthernIreland
inspectorsandtheNationalAuditOffice.ComplaintscanbemadetotheIndependentPoliceComplaintsCommission,the
OmbudsmanandtheAdjudicator.

Readformoredetailon(http://www.hmrc.gov.uk/prosecutions/explanation.htm) :

thelegalbasisofHMRCscriminalinvestigationpowers
thesafeguardsthatareinplace
howHMRCofficersaretrained
howintrusivesurveillanceisused
howcrossborderinvestigationsareconducted

HowHMRCinvestigatescriminalactivity
Thereare3areaswithinHMRCwherestaffareauthorisedtousecriminalinvestigationpowers:

CriminalInvestigation,includingInternalGovernance
SpecialistInvestigations(RoadFuelTestingUnit)
RiskandIntelligenceService,IntelligenceDevelopment&Integration

TheCriminalInvestigationdirectorateisresponsibleforallcriminalinvestigationsundertakenbyHMRC,wherecriminal
investigationhasbeendeterminedtobetheappropriateresponsetotaxordutyfraud.InternalGovernanceisresponsiblefor
undertakinginvestigationsintopotentiallyseriousdisciplinaryandcriminalallegationsinvolvingHMRCstaff.

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1/29/2016 2010to2015governmentpolicy:taxevasionandavoidanceGOV.UK

SpecialistInvestigations(theRoadFuelTestingUnit)isresponsibleforthedetectionanddisruptionoftheillicitsupply,
distribution,sale,storageandmisuseoffuelforroadvehicles.

TheRiskandIntelligenceServiceisresponsibleforprofilingandintelligencework.RiskandIntelligenceService,Intelligence
Development&Integrationrequirestheuseofcriminalinvestigativepowersaspartofitscriminalintelligencedevelopmentrole.

ThesearetheonlyteamsinHMRCwhoareauthorisedtouseHMRCscriminalinvestigationpowers.Thereisacomplete
separationofcivilandcriminalinvestigations.NooneinHMRCdealingwithcivilenquiries,suchastaxreturnsorclaimsfortax
credits,canusecriminalpowerstofurthertheseenquiries.

Appendix9:HMRCCampaigns

Thiswasasupportingdetailpageofthemainpolicydocument.

HMRCrunscampaignsthataredesignedto:

helppeopletobringtheirtaxaffairsuptodate
helpthemkeepthemthatway,and
helpstopthemgettingitwronginthefirstplace

ThesecampaignsarepartofHMRCsapproachtotaxcompliance(https://www.gov.uk/government/publications/ourapproachtotax
compliance) .

Howtheywork
Wedothisby:

providingopportunitiesthatmakeiteasiertobecompliantincludingofferinganincentivetoselfcorrect
bringingtogetherabasketofactivitiestoencouragevoluntarycomplianceinthetargetpopulation
lookingforopportunitiestoinformcustomerswhoareenteringthetargetedriskareaforthefirsttime
usingwhatislearnedtohelpHMRCtoimproveprocessestodealmoreefficientlywithcustomersinthefuture

Whattheymeanforcustomers
Ourcampaignsofferpeopleachancetogettheirtaxaffairsinorderonthebestpossibleterms.Theyprovidetoolsand
informationtohelppeopledothattohelppeoplekeeptheiraffairsinorderandtohelpstoppeoplegettingitwronginthefirst
place.

Wherepeoplechoosenottotakethechancetosettherecordstraight,weusetheinformation,gatheredbeforeandduringthe
campaign,toconductfollowupwork.Thisincludesinvestigationsandprosecutions.

Ifyouthinkyouhaveunpaidtaxthatyouwanttoreportandpaytous,pleasecontacttheCampaignsVoluntaryDisclosure
Helpline,8.00amto6.30pm,MondaytoFriday,on03001231078

TheresultsofHMRCcampaigns
Since2007,HMRCcampaignshavecollectedover610millionintaxfrompeoplecomingtous,andover395millionfroma
largenumberoffollowupactivities.

Campaign TotalRevenueasat31January2015

TaxHealthPlan 70,961,034
https://www.gov.uk/government/publications/2010to2015governmentpolicytaxevasionandavoidance/2010to2015governmentpolicytaxevasionand 12/16
1/29/2016 2010to2015governmentpolicy:taxevasionandavoidanceGOV.UK

TaxCatchUpPlan 2,968,808

ValueAddedTaxOutstandingReturns 38,696,945

VATInitiative 22,271,526

PlumbersTaxSafePlan 22,166,777

ElectriciansTaxSafePlan 15,803,609

EMarketplaces 9,379,361

DirectSelling 505,617

TaxReturnsInitiative 86,279,162

MyTaxReturnCatchUp 33,137,621

PropertySales 8,245,782

OffshoreDisclosureFacility 512,190,000

OffshoreNewDisclosureOpportunity 156,923,070

CampaignsConsequentialDisclosures* 5,536,921

LetProperty 20,017,365

HealthWellBeingTaxPlan 936,315

SecondIncome Updatedue2015/16

CreditCardSales Updatedue2015/16

SolicitorsTaxCampaign Updatedue2015/16

TOTAL 1,006,019,913

*ThesedisclosuresarefromindividualsnottargetedbyanyCampaignwhohavevoluntarilycomeforwardandusedthe
Campaignsdisclosurelinetotellusaboutundeclaredincome.

CurrentHMRCcampaigns

CreditCardSalesCampaign
TheCreditCardSalesCampaignisaimedatindividualsorbusinessesthatacceptcreditordebitcardpayments.Itoffersthem
anopportunitytobringtheirtaxaffairsuptodate.

FindoutmoreaboutHMRCsCreditCardSalesCampaign(https://www.gov.uk/creditcardsales) ,orcalltheCreditCardSales
Campaignhelpline(https://www.gov.uk/government/organisations/hmrevenuecustoms/contact/campaignscreditcardsales) .

https://www.gov.uk/government/publications/2010to2015governmentpolicytaxevasionandavoidance/2010to2015governmentpolicytaxevasionand 13/16
1/29/2016 2010to2015governmentpolicy:taxevasionandavoidanceGOV.UK

SecondIncomesCampaign
TheSecondIncomesCampaignoffersemployeeswhohavenotdeclaredadditionaluntaxedincomeachancetopaythetax
theyowe.

FindoutmoreaboutHMRCsSecondIncomesCampaign(https://www.gov.uk/secondincomes) ,orcalltheSecondIncomes
Campaignhelpline(https://www.gov.uk/government/organisations/hmrevenuecustoms/contact/campaignssecondincome) .

LetPropertyCampaign
TheLetPropertyCampaigntargetstheresidentialpropertylettingmarketandoffersachanceforlandlordsinthissectortoget
uptodateorputrightanyerrorstheyhavemadeandthenremaincompliant.Sofarover9,500landlordshavetakenthe
opportunitytobringtheirtaxaffairsuptodate.

FindoutmoreaboutHMRCsLetPropertyCampaign(https://www.gov.uk/letpropertycampaign) orcalltheLetPropertyCampaign
helpline(https://www.gov.uk/government/organisations/hmrevenuecustoms/contact/mycampaignsletproperty) .

PastHMRCCampaigns

SolicitorsTaxCampaign
TheSolicitorsTaxCampaignclosedon10June2015.Itofferedawaytodiscloseanypreviouslyundisclosedincomeforthose
withinthelegalprofession(individualsorsolicitorsinapartnershiporcompany).

Ifyouthinkyouhaveunpaidtaxthatyouwanttoreportandpaytous,pleasecontacttheCampaignVoluntaryDisclosure
Helplineon03001231078MondaytoFriday,8amto6:30pm.

HealthandWellbeingCampaign
TheHealthandWellbeingcampaigngaveprofessionalsworkinginHealthandWellbeinganopportunitytobringtheirtaxaffairs
uptodateonthebestpossibleterms.Thisincludedphysiotherapists,chiropractors,chiropodists,osteopaths,occupational
therapists,thoseworkinginhomeopathy,acupuncture,nutritionaltherapy,reflexology,nutrition,aswellaspsychology,speech
therapy,artstherapy.

Thedeadlineformakingyourdisclosureandpayingwhatyouowewas6April2014.

PeoplewhomissedtheopportunitycanstillmakeadisclosurebyusingtheCampaignVoluntaryDisclosureHelplineon
03001231078MondaytoFriday,8amto6:30pm.

TheelearningcourseTaxguideforHealthProfessionals(http://www.hmrc.gov.uk/courses/syob2/hp/index.htm) isavailableifyou
needfurtherguidance.

MyTaxReturnCatchUpPlan
TheMyTaxReturnCatchUpPlan(http://www.hmrc.gov.uk/campaigns/mtrc.htm) wasaimedatpeoplewhoreceivedataxreturnor
noticetofileareturnforyearsuptoandincluding201112,andwhohadnotacted.Peoplehaduntil15October2013tofileall
theiroutstandingtaxreturnsandpaywhattheyowe.Afterthat,HMRCbegantotakeamuchcloserlookattheirtaxaffairs.By
usingthiscampaigntocomeforward,customersreceivedthebesttermsavailable.

PropertySalesCampaign
ThePropertySalescampaign(http://www.hmrc.gov.uk/campaigns/psc.htm) isachanceforpeopletobringtheirtaxuptodateifthey
havesoldaresidentialproperty,intheUKorabroad,thatsnottheirmainhome.IfpeoplemadeaprofitbuthavenottoldHMRC,
theymightnothavepaidtherightamountoftax.Totakeadvantageofthebestpossibletermspeopleneededtohavevoluntarily
disclosedincomeorgainsandtohavepaidwhattheyowedby6September2013.

https://www.gov.uk/government/publications/2010to2015governmentpolicytaxevasionandavoidance/2010to2015governmentpolicytaxevasionand 14/16
1/29/2016 2010to2015governmentpolicy:taxevasionandavoidanceGOV.UK

Thedisclosuredeadlinehasnowpassedandourfollowupcomplianceworkfocusedonthosewhoshouldhavecomeforward
isunderway.Althoughthetermsonofferduringthedisclosurearenolongerguaranteed,itwillstillbebetterforanyonewhohas
somethingtotellusabouttocomeforward.

DirectSellingcampaign
TheDirectSellingcampaigngavepeopleinvolvedindirectselling,whohadnottoldHMRCaboutalloftheirincome,achance
tobringtheirtaxuptodateonthebestpossibleterms.Directsellingiswherepeopleselldirectlytocustomersusuallydoorto
doororincustomershomesortheworkplace.

ThevoluntarydisclosureopportunityofferedaspartoftheDirectSellingcampaignclosedon28February2013.Casesarenow
beingconsideredforfollowupaction.

VATOutstandingReturnscampaign
TheVATOutstandingReturnscampaignwasachanceforthosewhoereregisteredforVAT,buthadnotsentinalloftheirVAT
Returns,tobringtheirVATReturnsandpaymentsuptodateonthebestpossibleterms.

ThevoluntaryopportunityofferedaspartoftheVATOutstandingReturnscampaignclosedonthe28February2013.The
identificationofcasessuitableforcompliancechecksandcriminalinvestigationisongoing.

TaxReturnInitiative
TheTaxReturnInitiativewasaimedathigherratetaxpayingindividualswhohadbeensentaSelfAssessment(SA)taxreturn,
orhadbeentoldtheyshouldsendonein,buthadnotsubmittedareturn.

TheTaxReturnInitiativevoluntarydisclosureopportunityclosedon2October2012.HMRCisfollowingupagainstthose
targetedinthiscampaignwhochosenottotakepart.Thisincludesissuingestimatesoftheamountoftaxowedandcollecting
paymentthroughcourtactionorbyusingadebtcollectionagency.

eMarketplacescampaign
TheeMarketplacescampaignwasachanceforthosewhouseelectronicmarketplacewebsitestobuyandsellgoodsasa
tradeorbusiness,butwhohadnotpaidwhattheyowe,tobringtheirtaxaffairsuptodateonthebestpossibleterms.

Thevoluntarydisclosureopportunityofferedaspartoftheemarketplacescampaign(eMDF)closedinSeptember2012.HMRC
issuccessfullycontinuingtousethedatagatheredtosupportthecampaigntoidentifythosewhoshouldhavecomeforwardbut
chosenotto.HMRCarelookingforcasessuitableforinvestigation.

TaxCatchUpPlanfortutorsandcoaches
TheTaxCatchUpPlanisforthosewhoprovideprivatetuition,instructionandcoaching,eitherasamainorasasecondary
incomewhichtheychoosenottotellHMRCabout.Whilstthetimelimitedvoluntarydisclosureopportunityclosedon31March
2012itisstillbettertocomeforwardtoHMRCaswecontinuetolookforcasessuitableforinvestigation

TheVATInitiative
TheVATInitiativecampaignfocusedonindividualsandbusinessesoperatingatorabovetheVATthresholdwhohadnot
registeredforVAT.ThosethatcameforwardweregivenhelpbyHMRCtopaywhattheyoweandtoclaimVATrepayments.
HMRCcontinuestohelpthosethatcameforwardtogettheiraffairsinorder.

HMRCcontinuestofollowuponthosebusinesseswheretheinformationheldsuggeststhattheVATturnoverthresholdhad
beenexceeded.Thiscouldleadtothecompulsoryregistrationofbusinessesandapossiblefailuretonotifypenaltyofupto
100percentoftheVATdue.

ElectriciansTaxSafePlan
TheElectriciansTaxSafePlanwasanopportunityforpeoplewhoinstall,maintainandtestelectricalsystems,equipmentand
appliances,whohadnottoldHMRCaboutalltheirincomeinthepast,tobringtheirtaxaffairsuptodateonthebestpossible
terms.

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1/29/2016 2010to2015governmentpolicy:taxevasionandavoidanceGOV.UK

ThevoluntarydisclosureopportunityclosedinAugust2012.

PlumbersTaxSafePlan
ThePlumbersTaxSafePlanwasachanceforpeopleworkingasplumbers,gasfitters,heatingengineersandassociated
trades,whohadnottoldHMRCaboutalltheirincomeinthepast,tobringtheirtaxaffairsuptodateonthebestpossibleterms.

ThevoluntarydisclosureopportunityclosedinAugust2011.Asat30June2012,sixplumbershavebeenconvictedwithmore
expectedtofollow.

MedicsTaxHealthPlan
TheMedicsTaxHealthPlanfirstofferedavoluntaryopportunityfordoctorsanddentists,withtaxtopay,togettheiraffairsupto
datewiththebenefitofafixedpenalty.

ThevoluntaryopportunityclosedinJune2010.Thedisclosuresincludedoneindividualpaymentofover1millionbyadoctor
andoneofover300,000byadentist.Ourriskandinterventionprogrammeisongoingsoforthosewhoneedtoitisstillbetter
tocomeforwardtoHMRC.

New(offshore)DisclosureOpportunity
TheNewDisclosureOpportunitywasdesignedtoprovideonefinalchanceforUKbasedindividualsandbusinesses,with
unpaidtaxlinkedtoanoffshoreaccountorasset,tomakeadisclosureandputtheiraffairsinorder.15individualpaymentsover
500,000fourofwhichwereinexcessof1million.

TheNew(offshore)DisclosureOpportunitywasopentothosewithanyoffshoreinterest,assetsoraccounts.Datafromfinancial
institutionswasprovidedandHMRChasusedthisandotherinformationtoopenthousandsofenquiries.

OffshoreDisclosureFacility
TheOffshoreDisclosureFacilitywasthefirstHMRCcampaignandranbetweenAprilandNovember2007.

TheOffshoreDisclosureFacilitywasbasedondataobtainedfromfivemajorUKfinancialinstitutions.LiketheNew(offshore)
DisclosureOpportunity,itgavepeopleorbusinesseswithunpaidtaxconnectedtoanoffshoreaccountorassetanopportunity
tomakeafulldisclosureofliabilitiesandtopayduties,interestandpenaltiesdue.

Thecampaignwasthefirstofitskindandprovidedinformationandunderstandingofthewayoffshoreaccountsandassetswere
usedthatwascarriedintothefirstfulloffshorecampaign(theNew(offshore)DisclosureOpportunity)coveringallinstitutions
offeringoffshorefacilitiestoUKbasedentities.AftertheODFHMRCmadefollowupenquiries,mainlybasedondatagathered
followingasuccessfulapplicationfornoticesonfivemajorUKfinancialinstitutions.

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