In a news release issued today HM Revenue & Customs (“HMRC”) announced the establishment of a new Taskforce to tackle tax evasion by landlords in Scotland.
Taskforces, which have been operating since May 2011, target specific business sectors in specific locations where there is evidence of tax evasion.
Commenting on the announcement, Danny Alexander, Chief Secretary to the Treasury, said:
“It is not right that some landlords in Scotland have chosen to deliberately evade the taxes they should be paying. This is not fair on honest businesses and HMRC will come down hard on those who have chosen to break the rules. If you deliberately seek to evade tax, HMRC can and will track you down and you’ll face not only a heavy fine, but possibly a criminal prosecution as well.”
HMRC has said that they will target only people at high risk of breaking the rules and who don’t pay the tax they owe. However, experience shows that others can get caught up in the net.
If you are affected by this announcement, or have any other concern about tax, please contact Richard Green or Tricia Halliday in our Tax Department.