- One person was paid £100,000 for helping stop an offshore tax-dodge
- Upset spouses, neighbours or colleagues are typical snitches
- People are not paid their fee until the unpaid tax is recovered, HMRC say
By
Martin Robinson
10:07 EST, 31 July 2012
|
10:14 EST, 31 July 2012
Super-snitches have pocketed more than £1 million for helping catch tax-dodgers since the banking crisis began in 2008, it was revealed today.
Huge taxpayer-funded ‘bounty payments’ of up to £100,000 have been handed out by HM Revenue Customs to try to clamp down on evasion.
Cash rewards given to members of the public rose by more than a fifth in the last year, probably because more people were trying to avoid the 50p rate of income tax, experts say.
And the Government says that disgruntled spouses, family members, neighbours or colleagues are among the people who successfully snitched.
Tax credit: Members of the public who successfully shopped people dodging tax have received huge sums of money in the last 5 years
In 2008 HMRC even paid £100,000 to an
individual who provided details of secret bank accounts held by wealthy
Britons in Liechtenstein.
A total of £374,000 was paid-out by HMRC in 2011-12, figures released under the Freedom of Information Act show.
This with compares with £309,620 in 2010-11, £384,110 in 2009-10, £281,000 in 2008-09, and £155,950 in 2007-08.
Stephen Camm, tax partner at PwC, the accountancy giant, suggested that the increase in the top rate of income tax to 50 per cent in 2010 could be a factor in the rising payouts. ‘When tax rates go up, there is more evasion,’ he said.
‘I would not like to see this turned into a career.’
Figures published by investigative website Exaro revealed how individuals have been handed the cash for information that leads to the recovery of unpaid tax.
Curtain-twitchers: 70,000 people called the tax evasion hotline last year – although not all received payment.
HMRC claims that most payments are for low amounts – £50 or £60 – and are paid out following calls to its tax evasion hotline.
But information that leads to higher sums of unpaid tax being recovered can trigger payments running to some much larger amounts.
‘It can range from someone who has heard someone bragging in the pub about work they have done cash-in-hand, to details of someone shipping in lorry loads of vodka with paying tax’, an HMRC spokesman said.
The payments are based on the amount of unpaid tax that is recovered but there is no formula or fixed percentage basis for the rewards.
HMRC said that 70,000 people called their tax evasion hotline last year, but that only a small proportion of these would have received payments. The handouts are at the discretion of officers and are only paid once unpaid tax has actually been recovered.
A spokesman said: ‘The system works in the same way as Crime Stoppers – sometimes there will be cash rewards to help persuade the public to come forward. Officers review all calls and must decide which ones to open investigations into, watching out for malicious and incorrect information.’
HMRC says the payments to informants represents good value for money in the fight against illegal tax evasion. There are no up-to-date figures for the level of tax recovered as a result of information from paid informants, but figures for the period between 2005 and 2009 showed £42million was clawed back by the taxman this way.
This week pupils were being encouraged to shop tax dodgers to their teachers.
Tax
officers have developed teaching modules for schools in which
youngsters are asked if they know anyone ‘in their local area’ who is
not paying their fair share.
HMRC said it did not use the scheme to collect information about tax evaders from children.
But critics said it was ‘un-British’ of the taxman to try to turn ‘children into state spies’.
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Are the payments from HMRC tax free ? Ah L thought not !!
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Have a good look at parliament – suggest starting with ‘Trusts – right where is my dosh?
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Pay your tax like you are supposed to and you wont have a problem – simple!
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There are one hell of a lot of people in this country who should be eliminated and start from the top down!
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yet my husband is still waiting for the refund of ni overpayment, despite several letters requesting this from hmrc.
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Und zen ve vill drag zem off in zee midle of de night und no vun vill know vot haz happened to zem … Oh no silly me, nothing like has ever happened when a state has so influenced and rewarded its citizens for spying on each other.
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The secret police here were at that practice during Soviet times and the KGB. I know of people who informed and when the Soviets left the lives of these informers changed too! Also the Statsi in East Germany. I guess people who inform do so at their own risk.
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Argh , so a nation of snoopers with the common herd being turned against each other.. mmm was’nt that a book sometime ago ?
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I dont know which makes me more sick those who are evading tax or those doing the snitching. There is something about both types that I find repugnant.
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So, whistle-blowing is an honourable and rewarding activity, as long as it’s helping the government.
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