Compliance

UK Tax Authority Starts To Publicly Name And Shame Defaulters

Tom Burroughes Group Editor London 22 February 2013

UK Tax Authority Starts To Publicly Name And Shame Defaulters

The UK’s HM Revenue and Customs, the tax authority, has started to publish the name of tax “defaulters” on its website for the first time as part of a “name and shame” campaign against such individuals.

The organisation said it has been given the power to publish these names as part of a drive to deter persons form “deliberately defaulting on their tax obligations”. Firms named on the website include a knitware manufacturer, property maintenance firm, a wine retailer and hairdresser.

Another feature of the move is that non-compliant persons will be encouraged to fully disclose their affairs at the start of a tax probe so that their details will not be published, HMRC said in a statement.

“The publication of these names sends a clear signal that cheating on tax is wrong and reassures people who pay their taxes – the vast majority – that there are consequences for those who refuse to tell HMRC about their full liability. It also encourages defaulters to make a full and prompt disclosure and cooperate with HMRC to avoid being named,” David Gauke, a finance minister, said.

HMRC will update the list of those published on its website each quarter, it said.

The organisation defines a “deliberate defaulter” as a person who incurs a relevant penalty for an inaccuracy in a return or document for a tax period beginning on or after 1 April 2010;  a failure to comply with certain obligations, such as the obligation to notify HMRC of a liability to tax, or a VAT or excise wrongdoing that occurred on or after 1 April 2010.

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