Tuesday, 26 March 2013

Taxing Contradiction

After all the dust has settled on the rights and wrongs of the budget last week, I couldn’t help but scratch my head at this one.
 
OK, let’s start at the beginning. As things currently stand, HMRC is not fit for purpose and the Government has calculated that they are missing £7 billion each year in tax revenues. The Government estimate that 800,000 people a year are completing their tax return incorrectly.
 
 
Whilst the Government has shouted long and hard about a need for investment in a ‘new’ HMRC to increase tax revenues, the current action is nothing short of ridiculous.
 
In short, all 281 HMRC Enquiry Centres which give face to face advice to some 2.5 million people a year will be closed and replaced by a telephone service that will save £13 million a year.
 
Now if I am not mistaken, I think that means that less resources to help people will mean an increase to the £7 billion of missing tax revenue each year surely? Let’s hope it’s less than £13 million!
 
Farcical

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