The scale of HMRC investigations into large businesses shows the growing importance of tax compliance. Slow global growth means that many countries, including the UK, are looking towards tax investigations into large businesses to help close gaps in their finances. That means more intensive scrutiny by tax authorities and an expectation of more penalties.
The banking sector is particularly under the spotlight, with around 70 banks suspected of underpaying up to £9.3 billion in taxes as of March 31, 2024. Each bank may be underpaying an average of £132.5 million, reflecting the gravity of the investigations.
HMRC is probing 791 of the UK's largest companies for tax underpayments, covering 40% of the top businesses. Critical sectors such as banking and retail are under intense scrutiny.
The focus on banking is especially noteworthy, as the sector's tax liabilities have risen sharply, with the total value under investigation climbing from £6.1 billion in 2018/19 to £9.3 billion in 2023/24.
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