Government tax investigations 'taking three years to complete', data suggests

Data published by law firm Pinsent Masons has suggested that government tax investigations into large businesses are taking 'three and a half years' to complete.

13 Jun 2019

Data published by law firm Pinsent Masons has suggested that government tax investigations into large businesses are taking 'three and a half years' to complete.

According to the law firm, HMRC's litigation and settlement strategy makes it difficult for government investigators to settle for less than the full amount.

Commenting on the issue, a spokesperson for HMRC said: 'The tax we collect funds the UK's vital public services. We've secured over £62 billion in additional tax revenue from large businesses since 2010 – tax that would otherwise have gone unpaid.

'Over 85% of our investigations conclude within 18 months, but some cases are more complex and so will take longer to resolve and even require us to litigate.'

However, experts argue that tax investigations are often 'very disruptive' for businesses.

'HMRC's inflexible approach to tax avoidance is driving delays as it frequently aims to win every point against the business,' said Jason Collins, Partner at Pinsent Masons.

'HMRC's latest disclosure facility shows that HMRC is clamping down on what it views as businesses diverting profits from the UK through aggressive, out-of-date or erroneous transfer pricing.'

Quick Links

Home | Contact us | Accessibility | Disclaimer | Help | Site map |

© 2019 Blue Spire Limited. All rights reserved.

We use cookies on this website, you can find more information about cookies here.

Contact Chichester Office

Tel: +44 (0)1243 781234
Fax: +44 (0)1243 791770
Email: chichester@bluespiregroup.com


Contact Brighton Office

Tel: +44 (0)1273 739533
Fax: +44 (0)1273 732844
Email: brighton@bluespiregroup.com

Chichester Address
Cawley Priory, South Pallant, Chichester, West Sussex PO19 1SY

Brighton Address
5th Floor Intergen House, 65-67 Western Road, Hove, East Sussex BN3 2JQ

Blue Spire Limited is Registered to carry out audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales C004152645. Professional indemnity insurance is provided by Royal & Sun Alliance Insurance Plc 9th Floor, One Plantation Place, 30 Fenchurch Street, London, EC3M 3BD and its territorial coverage is worldwide (excluding United States/Canada).
Blue Spire Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. FSA register https://www.fca.org.uk/register reference 566257. This guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at customers based in the UK