HMRC large business unit reveals increase in ‘tax under consideration’

HM Revenue & Customs has revealed that its estimate of the amount of tax large businesses might have underpaid rose to £24.8 billion for the year ending March 31, an increase of almost 14 percent from the previous year, while the department stressed that the figure did not represent tax actually owed or unpaid.

HMRC released its estimate of “tax under consideration” to the law firm Pinsent Masons in response to a freedom of information request … “A £3 billion rise in the tax HMRC is querying shows that HMRC is broadening its horizons and putting a far wider range of transactions under scrutiny,” said Heather Self, a partner at the firm.

“Tax under consideration is not tax owed or unpaid, it’s an estimate of what might be at stake if we didn’t investigate,” an HMRC spokesperson said in an emailed statement. Read more:

My news story for Tax Analysts, August 31 (paywall)