Unpaid Tax to be taken from Banks

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
What do you think about the Revenue's new proposals to take unpaid tax from taxpayer's bank accounts? Good or bad?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Unpaid Tax to be taken from Banks

    I can't see this one getting passed to be honest, I think there will be too many problems.

    For instance, what happens with joint accounts?

    I am also not sure why HMRC debts would then be treated as a preferential creditor. Presumably if someone fails to pay their tax then they will probably owe money to other people too - are they just left high and dry?

    I think seizing the bank accounts of evaders would be a better idea and then let the courts decide who gets the money, although that is also fraught with difficulty.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Unpaid Tax to be taken from Banks

    I think Dean's got a good point to be quite truthful.

    Undoubtedly the whole thing is rife with problems and it is just one of those opportunities HMRC thinks it has to become more aggressive in their approach. Undeniably, undeclared tax on offshore bank accounts is an opportunity for the taxman to start to rub his hands, however, the resources do not seem available at HMRC in order to start this ball rolling properly. Indeed HMRC are actually cuttings its staff to reduce overheads!

    There was a lot of "panic" when IR 35 first came to fruition. Indeed managed-service companies still are attracted to the eye of the Inspector, though it is questionable as to how profitable such legislation has been for HMRC.

    Kind regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Unpaid Tax to be taken from Banks

    Must admit, I do agree. I believe that the IRS do something similar in the US. Not sure how it works over there though.

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