http://bit.ly/nzqCbQ Business Carded!

I got my first ever official business cards last week. According to this, I am a "Software Engineer".
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The Revenue is seeking sweeping new powers to force individuals and companies to name those it suspects of tax dodging. Under the proposals, Revenue & Customs could insist that anyone thought to be involved in an 'economic transaction' with a party unknown to the taxman should spill the beans. For example, it would be able to question a wealthy individual with a big garden or grounds, who might reasonably be expected to employ a gardener, but where there is no record of a gardener being paid. Another case could involve a business, such as a clothing company that doesn't identify a supplier.


Grand plan: The Revenue could insist that anyone thought to be involved in an 'economic transaction' with a party unknown to the taxman should spill the beans

 



Easy ways to pay less income tax


In both cases there is no requirement
on the individual or company to declare payments, and it is not an
offence to pay people in cash.
It says the powers are needed to
fulfil Britain's obligations to help foreign tax authorities pursue
their own citizens under mutual assistance arrangements.
But it admits these powers will be
available for use against British taxpayers too. Mike Warburton, at
accountant Grant Thornton, said: 'We tend to set the pace in
international tax cooperation. I find it surprising to be told we need
to raise our game to fit in with international standards.'
Already, the Revenue has specific
rights in relation to banks and auctioneers, for example, whom it can
require to name those thought to be engaged in a transaction that should
be taxed. But this would be a much broader power.
A key defence against such a demand is that it may breach a taxpayer's human rights.
'The Revenue seems to think it needs
more power to find things out without jumping through hoops,' said David
Heaton, of accountant Baker Tilly. 'It wants to make things as easy for
itself as possible.'
The Revenue says that the change is
needed because the Global Forum on Transparency, which advises
governments on the exchange of information to fight tax dodging,
believes that Britain's powers in this area are not up to scratch.
Britain is not obliged to accept this advice, but has chosen to do so.
And the option of applying new powers
only to foreign taxpayers is ruled out by European Union law, according
to the Revenue, so the new regime must apply to everyone.
It added that, domestically, it was 'not the Government's intention to use this power on a large scale'.
It says 'information requests must be
reasonable and proportionate' and 'a person may appeal against a notice
on the ground that it would be unduly onerous to comply'. Finally, 'the
information should not be available from any other source'.
While some are concerned, Paul Aplin,
of the Institute of Chartered Accountants, said: 'I think it is
reasonable for the Revenue to wish to identify a person it believes is
going to be in receipt of income.'
The Revenue said: 'The consultation is ongoing until September 29.
We are looking for as broad a range of views as possible and the Government will respond in due course.'