Tax evasion in the restaurant sector
HMRC have launched a new task force aimed at tackling tax fraud and unpaid taxes in the restaurant trade. The task forces bring together various HMRC compliance and enforcement teams for targeting specific sectors and locations where there is a high risk of tax evasion.
The restauranttrade has been identified as a sector where there can be significant tax leakage. The new task force will begin by targeting businesses in London and will involve the targeting of 600 restaurants which have been identified as the highest risk cases. The task force will then begin focusing on the restaurant trade in Scotland and the North West.
The launch of the new task force is part of the Government’s £900m spending review investment to tackle tax evasion, avoidance and fraud from 2011/12, which aims to raise an additional £7bn each year by 2014/15.
Tax fraud is most prevalent in businesses involved in the agricultural and food processing sectors, construction, hotels and leisure, security and other labour intensive industries. HMRC is planning to launch a further nine task forces in 2011/12, with more to follow in 2012/13.