Tax inspectors in the UK work for HM Revenue & Customs to ensure everyone pays their fair share of tax. They review tax returns and perform audits to identify tax evasion, and may be involved in tax evasion lawsuits.
A tax inspector works in the UK, helping the taxing body to ensure that everyone pays their fair share of tax. The tax collection body is called HM Revenue & Customs (HMRC) and its responsibility is to assess income tax to pay for public services provided, including the National Health Service (NHS) and other public service programmes, police departments , firefighters and military defense. HMRC works similarly to the Internal Revenue Service (IRS) in the United States, and a tax inspector performs a similar role to an IRS agent in the US.
A tax inspector’s first duty is to identify when it is likely that a person is not paying all the taxes they owe HMRC. Inspectors do this by reviewing tax returns and trying to identify warning signs that suggest an individual is guilty of tax evasion. These red flags can exist when a person’s tax deductions are unreasonable relative to their income or when a person in a primarily cash business has income that is not in line with what would be expected. There may also be other red flags that come to the tax inspector’s attention, but HMRC does not fully reveal this information as to what will trigger the investigation.
When red flags exist, the tax inspector will contact the person in question and perform an audit to determine whether the appropriate amount of tax has been paid. He may visit the individual and interview witnesses or review bank statements and other sources of data on earned income and taxes paid. If tax evasion occurs, the tax inspector will identify it and report the problem to HMRC. Appropriate back taxes will then be charged.
A tax inspector may also be involved in tax evasion lawsuits brought by HMRC. Referred to as courts, these are essentially situations where a person is prosecuted for tax evasion. The inspector may present evidence that he discovered that led to the charge of tax evasion. He will testify at the court hearing and assist HMRC in proving their tax evasion case against the accused. As income taxes play an important role in sustaining the UK economy, tax inspectors play an important role in society.
Protect your devices with Threat Protection by NordVPN
