 Treasury targets eBay tax cheats
13 June 2011: PKF Accountants & business advisers has issued a warning to traders on eBay after HM Revenue & Customs today announced plans to target tax evasion on e-marketplaces.
John Cassidy, tax investigation and dispute resolution partner at PKF, comments: "This is the latest in a series of announcements by HMRC, which is clearly keen to show it is sharpening up its act on tax cheats."
"Targeting traders on e-marketplaces such as eBay is unlikely to contribute much directly to HMRC’s target of collecting additional tax of £7bn each year by 2014/15. But it sends out a clear message that the tax man has raised his game and is making a serious effort to crack down on dishonest individuals and businesses."
"With this most recent campaign, the Treasury has decided to adopt a ‘carrot and stick’ approach – on the one hand it is warning traders that it will seek out anyone who tries to evade tax; on the other hand it is providing individuals with a chance to come forward voluntarily and avoid the worst of the penalties."
"The deterrent should be effective because there is no hiding place for evaders. HMRC will use software to monitor transactions and officers can then follow up using information on account holders received from the marketplaces themselves. In effect, HM Revenue & Customs is saying: ‘you will get caught so you might as well come clean now."
“HMRC has made it clear that it is targeting individuals who use e-marketplaces to buy and sell goods as a trade or business, rather than casual sellers. Traders who have been less than honest should seriously consider getting in touch with HMRC and making a voluntary disclosure before they get a knock on the door.”
ENDS
For further information, please contact: Andy Konieczko, 020 7065 0537, andrew.konieczko@uk.pkf.com
Notes to Editors:
PKF (UK) LLP is a leading firm of accountants and business advisers with more than 1,500 partners and staff operating in 23 offices in the UK mainland firm, incorporating a wholly-owned financial planning company and associated offshore practices. The firm specialises in advising growing and entrepreneurial/owner-managed businesses, AIM and fully listed companies, and also has extensive experience in the public and not-for-profit sectors. Principal services include assurance and advisory; taxation; consultancy; corporate recovery and insolvency; corporate finance and forensic. The firm has particular expertise in advising sectors such as hotels and leisure; mining and resource; public sector; real estate and construction; professional practices; not-for-profit; and medical. The firm’s web site is www.pkf.co.uk
PKF (UK) LLP also offers financial services through its FSA authorised company, PKF Financial Planning Limited. PKF (Isle of Man) LLC is a limited liability company registered in the Isle of Man. PKF (Guernsey) Limited is incorporated in Guernsey.
PKF (UK) LLP is a member firm of the PKF International Limited (PKFI) network of legally independent member firms. The PKFI member firms have around 2,200 partners and more than 21,000 staff in around 125 countries.
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