More offshore clampdowns planned for 2011
It is understood that HM Revenue & Customs (HMRC) is now in negotiation with three more offshore jurisdictions with a view to signing amnesties similar to the ground-breaking deal with Liechtenstein. Overseas banks are now taking active steps to ensure that funds they hold for UK taxpayers are fully tax compliant. In most cases, undeclared monies or assets are no longer welcome, advisers say. Dave Hartnett, HMRC permanent secretary, said: "A number of countries long seen as tax havens are looking at the advantages that come with disclosure regimes. We are talking to them. Every day HMRC exposes more money hidden offshore. So burying your head in the sand is becoming a very expensive and risky option."

HMRC service standards slipping
A survey of its members by one of the accountancy profession's leading associations, the Institute of Chartered Accountants in England & Wales, has revealed that HMRC's overall service standards have continued to slip. Accountants are also unhappy that it has not embraced email communication. "We are very concerned that overall service standards have fallen steadily as HMRC continues to seek to reduce its costs and improve its efficiency in line with the department's budget allocation," stated the report. Six out of ten (61%) respondents said HMRC staff's technical knowledge was rarely or never sufficient, compared to 50% a year earlier.

VAT cheat jailed for an extra nine years
Emmanuel Hening, a French/Belgian national, jailed for 15 years in December 2006 for masterminding a £54m 'missing trader' VAT fraud, has been given an additional sentence of nine years for failing to repay £40m of his criminal profits. His crime involved a mobile phone scam, where handsets were imported into the UK VAT-free by various companies set up by Hening. Hening then sold the phones, charging VAT that was never paid over to HMRC. The companies which had sold the phones to buyers then went 'missing' without handing over the merchandise.

Deferral schemes not being supported by HMRC
HMRC is forcing some businesses to pay up to 20% interest in a bid to deter them from using government-backed tax-deferral schemes, according to a report in the Daily Telegraph. HMRC is pushing taxpayers, applying to defer tax, to explore all other credit alternatives first, and is demanding to see credit card bills which can carry up to 20% interest on unpaid debt. Some firms have been told to pay their tax using their credit card.

Charities saved £60m
Peter Brown, an accountant based in York, has helped UK charities to save a total of £60 million. He has done this by forcing HMRC to exempt UK charities from filing rules that would have required them to make a huge investment in software development.

Government puts pressure on banks
The government has forced the top 15 banks in the UK to sign up to a new code of practice on reducing tax avoidance. The chancellor, George Osborne, told the banks that those who refused to sign up would face more intrusive inspections from the taxman, giving them until the end of November to do so.

Sir Philip Green's £285m saving
Sir Philip Green, the retail billionaire and efficiency adviser to the government, is to become the target of a nationwide campaign by protesters opposed to government cuts and alleged tax avoidance.

High Street stores belonging to the businessman's group, including Topshop, Dorothy Perkins and Miss Selfridge, will be among those that protesters focus on in the run-up to Christmas, the Guardian reported. The businessman banked the biggest pay cheque in corporate history in 2005 when his Arcadia fashion business, which owns Topshop, paid a £1.2bn dividend. The record-breaking payment went to his wife, Tina, who lives in Monaco and is the direct owner of Arcadia. Because of this arrangement, no UK income tax was due on the gain. Richard Murphy, director of Tax Research UK, estimated Green saved £285m by paying the dividend to his wife.

Corporate tax plans
George Osborne has revealed its key principles behind plans to reform corporate tax, including lower rates, and a simpler and more stable system. The government hopes that the tax reforms will help to create the most competitive corporate tax regime in the G20 group of developed and developing nations. The planned reform will follow five principles: lowering rates while maintaining the tax base (a low tax rate with fewer reliefs and allowance), a stable tax system, aligning the tax system with business practice, avoiding complexity and maintaining a level playing field for taxpayers.

£20m tax saving no small beer
The poverty charity ActionAid has criticised SABMiller, the global brewer behind Grolsch and Peroni, for avoiding an estimated £20m of tax in Africa and India. Using published financial information, interviews and undercover research, ActionAid alleges the beer giant was funnelling tax through its complex corporate structure, depriving developing economies of vital tax revenue. "SABMiller conducts its tax affairs behind a veil of secrecy. The company and its subsidiaries siphon money away from African countries and into tax havens in Europe, where the tax rates are far lower," Martin Hearson, a co-author of the report, said. SABMiller has vehemently denied the accusations.

Thousands told to repay employee benefits
The Sunday Times has reported that many taxpayers who received car, childcare and insurance refunds may have to repay their benefits to the government. Accountants are warning the flaw in how employee benefits are calculated may lead to thousands repaying their benefits. HMRC said this was not a mistake but simply how the tax system works. "Some will have received a repayment and now find they have underpaid. We are sorry about that, but it is not an error or a bungle - that is the way the tax system works. The adoption of a real-time PAYE system will make this a thing of the past," HMRC told the Sunday Times.