Consultants criticise crackdown because it falls outside normal enquiry methods

HM Revenue and Customs (HMRC) has come under fire for a series of pilot schemes aimed at cracking down on tax evaders.

HMRC has claimed its strategy, which includes telephone-based assessments, aims to ensure business and corporate tax compliance.

Doug Tweddle, director of local compliance at HMRC, said: “We aim to trial a lighter touch, providing help where needed and freeing up resources to tackle serious and deliberate non-compliance.”

However Stuart Rogers, senior tax consultant at Target Consulting, said: “HMRC doesn’t have the right to do this because it’s outside the normal enquiry methods and businesses have no need to comply with anything outside normal methods.”

One source who wished to remain anonymous, said SMEs could find it intimidating. “There is a great danger that small businesses can be taken advantage of by HMRC. However, if firms are playing by the rules they shouldn’t have anything to worry about,” the source said.

Separately, the European Union (EU) Commission is finalising new regulations for an EU Customs Security Programme which will be implemented from 1 January 2007.

The programme, which is part of the war against terrorism, fraud and counterfeit products, will require all importers and exporters of technology products to have a security certificate.