Recommendations & Conclusions
4 items
12
Conclusion
Thirty-Third Report - HMRC performance …
Acknowledged
We raised the point that there was a moral duty and fairness issue to pursue fraud with, for example, some companies getting an unfair competitive advantage through their abuse of the schemes. HMRC said that it looks into every single allegation of fraud, drawing together other supporting data such as …
Government response. HMRC will continue to address and recover overclaimed grants as part of its business-as-usual compliance activity, taking action against those who have abused the COVID-19 financial support schemes where it is cost effective to do so.
HM Treasury
13
Conclusion
Thirty-Third Report - HMRC performance …
Acknowledged
We asked HMRC about a case where a criminal used a legitimate company’s details, apparently successfully, to apply for a VAT registration number and make fraudulent VAT 13 Qq 14, 33, 43–45 14 Qq 80–83, 92–95 15 Q 84 16 Qq 89–91, 113 12 HMRC performance in 2021–22 repayment claims. …
Government response. HMRC will engage further with international partners, including German tax authorities via its FCLO in Berlin, to understand how other tax authorities tackle VAT fraud through controls on registration, with target implementation by end March 2024.
HM Treasury
14
Conclusion
Thirty-Third Report - HMRC performance …
Acknowledged
HMRC told us that VAT is a particular target for organised crime as it can involve HMRC repaying large amounts to taxpayers. HMRC described it as an ‘arms race’, with HMRC constantly changing its processes and risk assessment to prevent criminals from abusing the tax registration process, and criminals constantly …
Government response. HMRC will engage further with international partners, including German tax authorities via its FCLO in Berlin, to understand how other tax authorities tackle VAT fraud through controls on registration, with target implementation by end March 2024.
HM Treasury
20
Conclusion
Thirty-Third Report - HMRC performance …
Acknowledged
HMRC said it is trying to improve the data it uses to understand the behaviour of its debtors. It is experimenting with data from credit reference agencies.29 It is also developing a comprehensive single customer account, using funding it received in the 2021 Spending Review.30 HMRC’s digital services are currently …
Government response. HMRC recognizes the importance of differentiating between taxpayers who are struggling to pay and those who can afford to meet their liabilities and is expanding debt management services and testing external data sources. They will apply the external data to …
HM Treasury