TUC leader Paul Nowak and retail mogul Julian Richer have united to demand government action against wealthy tax dodgers, highlighting a £36 billion annual loss in uncollected taxes. Here’s the full story.
Action Against Tax Dodgers
The head of Britain’s trade union movement, Paul Nowak, and Julian Richer, founder of Richer Sounds, have collaborated to push for stricter government action against wealthy tax dodgers.
Eye-Watering
They assert that the eye-watering amount of up to £36 billion annually is lost in uncollected taxes owed by companies and individuals.
Pursue Tax Evaders
Nowak and Richer have urged Chancellor Jeremy Hunt to allocate more resources to HM Revenue and Customs (HMRC) to pursue tax evaders ahead of the upcoming budget.
Improved Funding
They argue that HMRC’s current funding needs to be improved to tackle non-payment, avoidance, and evasion effectively.
“National Scandal”
Richer expressed outrage at the situation, telling the Guardian, “It’s a national scandal. What really annoys us are these guys ripping off the state. So for me, it’s personal. I’m absolutely outraged by what’s going on.”
“It’s Absolutely Wrong”
He continued: “We chase people on benefits who don’t pay – we found money for that. And yet, we’re not spending it on this? It’s absolutely wrong and the great majority of the public are being cheated by this lack of effort.”
Inherent Unfairness
Nowak stressed the unfairness inherent in the system, where wealthy individuals can avoid or reduce their tax bills, which was not possible for ordinary citizens.
“Taxes Aren’t Optional”
Nowak stated, “Our members pay their taxes. For them, taxes aren’t optional. HMRC doesn’t show discretion. But here we’ve got tens of billions of pounds that should be going to fund our schools and hospitals that are being wasted.”
Tax Gap
Last year, HMRC saw its so-called “tax gap,” representing the disparity between anticipated and actual tax receipts, widen to an astonishing £36 billion.
Serious Transgressions
Analysis by the TaxWatch think tank, which was set up by Richer, revealed that a significant portion of the tax gap stems from serious transgressions such as criminal activities, evasion, and legal manoeuvres to avoid payment.
Decline in Compliance Checks
Recent data shows a decline in compliance checks by HMRC, exacerbated by reduced funding and flatlining morale amongst staff.
Sharp Decline
Investigations into offshore accounts, corporate entities, and wealthy taxpayers have declined sharply in the past five years, raising serious concerns about the government’s commitment to enforcing its own tax regulations.
Lack of Funding
Nowak criticized the government for failing to adequately fund HMRC, despite increased workload due to the pandemic and a surge in fraudulent activities related to COVID-19 relief funds.
Tax Breaks For Donors
Nowak stated, “Dealing with some of the abuses around what’s been happening with the Covid recovery funds meant they took their eyes off what was happening with tax more broadly. You’ve got a government that currently isn’t really interested in enforcing its own rules, particularly for those who might be donating to its own election campaign.”
Public Sector Disregarded
He suggested that this lack of funding reflects the government’s broader disregard for the public sector’s importance in supporting the economy.
“We Need To Spend More Money”
Richer warned against the prioritization of tax cuts over desperately needed funding for public services, stating, “We’ve got so many things broken in our country, we need to spend more money. The NHS is crumbling, dental services are crumbling, the roads are not being repaired, the criminal justice system is falling apart at the seams.”
“It’s Just a Bribe”
Richer’s summary of the government’s proposal to cut taxes in the upcoming budget was unequivocal, stating, “Is this a time to cut taxes, really? It’s just a bribe from a political party trying to get votes.”
Justified Investment
According to the TUC and TaxWatch, investing in HMRC is justified, as research suggests that every £1 allocated to compliance yields £15 for the public coffers, with returns potentially reaching £39 for inquiries targeting large corporations.
Unexpected Alliance
The unexpected alliance between a multi-millionaire business owner and the Trade Union Congress will surely raise eyebrows up and down the country.
Combine Forces
Nowak and Richer’s evaluation of the current situation is so dire that they have felt the need to combine their forces to push for government action on what they see as the unacceptable and unsustainable mess surrounding the UK’s tax collection activity.
Combating Tax Evasion
By aligning their voices, Nowak and Richer seek to galvanize public and government support for measures to combat tax evasion and ensure a fairer distribution of resources for the benefit of society.
No Promises
Whether their combined efforts affect the government’s plans for the upcoming budget remains to be seen.
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