HM Revenue and Customs (HMRC) have announced that following their much-publicised purge on tax eva
sion in the hospitality sector last spring, they have launched more than 500 investigations into restaurant businesses.
sion in the hospitality sector last spring, they have launched more than 500 investigations into restaurant businesses.
So far, fewer than ten per cent of the cases have been settled, with an average settlement of £14,000. 22 cases are currently under consideration for criminal prosecution or civil investigation of fraud. This presumably includes the case that HMRC state is showing a discrepancy of more then £600,000 between the tax paid and the tax calculated to be due.
If the balance of the cases selected for investigation show similar yields, HMRC should receive £7 million in additional tax.