Multi-millionaires are enjoying a “cosy” relationship with the taxman and receive a level of help and support that is not given to ordinary taxpayers, MPs say in a report.
Twisted, twisted, logic.
The MPs said that “HMRC’s approach to dealing with the very wealthy suggests that they get help with their tax affairs that is not available to other taxpayers”.
Phone calls and discussions with them are not routinely recorded – unlike those between HMRC staff and ordinary taxpayers – leading to the impression of an “overly close and inappropriate service to the wealthy”.
The MPs were concerned that around one-third of these individuals are under investigation at any one time, and is investigating cases with a potential value of £1.9 billion.
Yet since 2012, HMRC issued just 850 penalties totalling £9 million to them, an average penalty of £10,500 each.
The original concern was that these very rich weren’t paying enough, or rather not the right amount. So, specialist unit to deal with the very rich. Now the complaint is that there is a specialist unit dealing with the very rich. Further, the complaint is that most of them are obeying most of the law most of the time, which is why there are few prosecutions.
Thus we must change the system.
Figures showed that the tax take from this group of high net worth individuals fell by a fifth, equivalent to £1billion, over the past five years and while sums paid by ordinary tax players jumped by £23billion.
How have the taxes which weigh upon those groups changed over this time?