HMRC is going to greater lengths to look into mid-tier and large businesses\u2019 tax affairs, with a particular focus on intra-group payments.<\/p>\n
According to recent figures, almost \u00a319 billion of potential underpaid tax is being investigated by the tax authority, with cross-border transactions highlighted as a key area in which inaccuracies are more likely to occur.<\/p>\n
Any business \u2013 no matter what size \u2013 is being warned that HMRC is likely to be assessing their activity and tax payments if they use cross-border intra-group transactions.<\/p>\n
More than \u00a32.4 billion of possible tax payments that are linked to the pricing of intra-group transactions, including interest payments and royalties, were being scrutinised in March, and the figure is expected to have risen over recent months.<\/p>\n
As part of its stricter stance on business tax, the Government has plans to force large companies to publish their tax strategies, which will provide details of planning and payments.<\/p>\n
A voluntary code of practice is also expected to be created by the tax authority, which can then be used by large businesses that they are committed to governance and not using schemes that could be considered to fall under the banner of aggressive tax avoidance.<\/p>\n
HMRC itself has claimed that the corporation tax gap \u2013 the difference between the amount of tax that should be collected against what is actually collected \u2013 was approximately \u00a31.8 billion during the 2012\/13 financial year.<\/p>\n
However, the corporation tax gap estimate, when looked at as a proportion of total corporate tax liabilities, is said to have remained at a similar level for the last three years.<\/p>\n","protected":false},"excerpt":{"rendered":"
HMRC is going to greater lengths to look into mid-tier and large businesses\u2019 tax affairs, with a particular focus on intra-group payments.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/911"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=911"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/911\/revisions"}],"predecessor-version":[{"id":912,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/911\/revisions\/912"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}