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More staff to scrutinise tax affairs of the UK richest | More staff to scrutinise tax affairs of the UK richest |
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Individuals with assets of more than £1m face a new crackdown on tax avoidance, Lib Dem Treasury Chief Secretary Danny Alexander has revealed. | Individuals with assets of more than £1m face a new crackdown on tax avoidance, Lib Dem Treasury Chief Secretary Danny Alexander has revealed. |
The number of people working in the Affluence Unit (AU) of HM Revenue and Customs is to increase from 200 to 300, to cope with the additional workload. | The number of people working in the Affluence Unit (AU) of HM Revenue and Customs is to increase from 200 to 300, to cope with the additional workload. |
Previously, the unit only scrutinised the tax affairs of people with assets and property of more than £2.5m. | Previously, the unit only scrutinised the tax affairs of people with assets and property of more than £2.5m. |
Mr Alexander told the Mail on Sunday the wealthiest "should pay more". | Mr Alexander told the Mail on Sunday the wealthiest "should pay more". |
Lib Dem leader Nick Clegg said at his party's conference on Saturday that the party wanted more tax on unearned wealth. | Lib Dem leader Nick Clegg said at his party's conference on Saturday that the party wanted more tax on unearned wealth. |
'Anomalies' | 'Anomalies' |
Mr Alexander said the 100 additional AU staff would cross-reference files and records to spot signs of avoidance. | Mr Alexander said the 100 additional AU staff would cross-reference files and records to spot signs of avoidance. |
He told the Sunday tabloid that the wealthiest "did best in the boom years" and so should "pay more now". | He told the Sunday tabloid that the wealthiest "did best in the boom years" and so should "pay more now". |
"The measure will apply to people with homes and assets of more than £1m," he said. | "The measure will apply to people with homes and assets of more than £1m," he said. |
"They will look at anomalies and sniff out any problems," he added. | "They will look at anomalies and sniff out any problems," he added. |
Simon Hughes, the Lib Dem deputy leader, told the BBC the party was looking at a range of "wealth taxes" over the next 12 months as part of its commitment to "deliver fairness". | Simon Hughes, the Lib Dem deputy leader, told the BBC the party was looking at a range of "wealth taxes" over the next 12 months as part of its commitment to "deliver fairness". |
"What Danny Alexander is making clear this weekend is that people who aren't currently paying the tax they should pay, will pay. | "What Danny Alexander is making clear this weekend is that people who aren't currently paying the tax they should pay, will pay. |
Liberal Democrats have long emphasised their enthusiasm for making sure wealthy individuals pay their fair share of tax. | Liberal Democrats have long emphasised their enthusiasm for making sure wealthy individuals pay their fair share of tax. |
At their conference last year Danny Alexander announced a special team to examine the affairs of the most affluent. | At their conference last year Danny Alexander announced a special team to examine the affairs of the most affluent. |
Now he has revealed HM Revenue and Customs is to add an extra 100 inspectors to the 200 already recruited, and said the scope of their inquiries would be broadened - targeting those worth more than £1m, not £2.5m as was previously the case. | Now he has revealed HM Revenue and Customs is to add an extra 100 inspectors to the 200 already recruited, and said the scope of their inquiries would be broadened - targeting those worth more than £1m, not £2.5m as was previously the case. |
Several Premier League stars have already been forced to pay extra tax, he revealed. Mr Alexander will also write to the BBC's new director general George Entwistle to say its employees should be paid openly and transparently. | Several Premier League stars have already been forced to pay extra tax, he revealed. Mr Alexander will also write to the BBC's new director general George Entwistle to say its employees should be paid openly and transparently. |
"People and companies who, for example, so arrange their affairs that they end up paying no tax even though they make huge profits, and companies which use off-shore tax havens instead of paying tax into the revenue here. | "People and companies who, for example, so arrange their affairs that they end up paying no tax even though they make huge profits, and companies which use off-shore tax havens instead of paying tax into the revenue here. |
"We can't expect the public services... to be paid for by people on £5,000, £10,000, £15,000, £20,000 a year when people on £1m, £1.5m, £2m aren't paying their fair share," he said. | "We can't expect the public services... to be paid for by people on £5,000, £10,000, £15,000, £20,000 a year when people on £1m, £1.5m, £2m aren't paying their fair share," he said. |
But Mr Hughes denied the move was a stealth "mansion tax", saying that was a "separate issue". | But Mr Hughes denied the move was a stealth "mansion tax", saying that was a "separate issue". |
Footballers and BBC | Footballers and BBC |
Mr Alexander also said rich football stars would be having their affairs scrutinised. | Mr Alexander also said rich football stars would be having their affairs scrutinised. |
"I am not ascribing any particular moral characteristics to footballers," he said. "But experts will identify warning signs, make sure their tax affairs are in order and approach the individual and 'have a conversation' if they aren't." | "I am not ascribing any particular moral characteristics to footballers," he said. "But experts will identify warning signs, make sure their tax affairs are in order and approach the individual and 'have a conversation' if they aren't." |
And he said he had written to the BBC to demand employees are paid "openly and transparently", after it emerged in the summer that some high-earning personalities were paid via personal service companies. | And he said he had written to the BBC to demand employees are paid "openly and transparently", after it emerged in the summer that some high-earning personalities were paid via personal service companies. |
Mr Clegg, the Lib Dem leader, said during a speech at his party's conference in Brighton on Saturday that it was "just wrong that people on low and middle incomes who work hard and play by the rules are taxed so much, while Russian oligarchs pay the same council tax you do on a family home". | Mr Clegg, the Lib Dem leader, said during a speech at his party's conference in Brighton on Saturday that it was "just wrong that people on low and middle incomes who work hard and play by the rules are taxed so much, while Russian oligarchs pay the same council tax you do on a family home". |
"Liberal Democrats are fighting to change that - lower taxes on work, and more tax on unearned wealth. I want to reward people who put in a proper shift, not those who sit on a fortune. People for whom a bonus means a few extra quid at Christmas, not a million pound windfall." | "Liberal Democrats are fighting to change that - lower taxes on work, and more tax on unearned wealth. I want to reward people who put in a proper shift, not those who sit on a fortune. People for whom a bonus means a few extra quid at Christmas, not a million pound windfall." |
The HMRC's Affluence Unit operates in addition to its High Net Worth Unit (HNWU), which was set up in 2009 to review the personal tax affairs of the 5,000 wealthiest people in the UK, each with a total wealth of at least £20m. | The HMRC's Affluence Unit operates in addition to its High Net Worth Unit (HNWU), which was set up in 2009 to review the personal tax affairs of the 5,000 wealthiest people in the UK, each with a total wealth of at least £20m. |
HMRC has also already launched the Offshore Co-Ordination Unit (OCU) which looks to "fully exploit the increasing amount of offshore information at HMRC's disposal, including bank account data". | HMRC has also already launched the Offshore Co-Ordination Unit (OCU) which looks to "fully exploit the increasing amount of offshore information at HMRC's disposal, including bank account data". |
In October last year, HMRC announced that it was seeking to recover £7bn per annum of tax lost through evasion and avoidance over the next four years. | In October last year, HMRC announced that it was seeking to recover £7bn per annum of tax lost through evasion and avoidance over the next four years. |
The HNWU collected £162m from its enquiry work in 2010/11. | The HNWU collected £162m from its enquiry work in 2010/11. |
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