01 May 2015HM Revenue and Customs (HMRC) has intensified its clampdown on suspected tax avoidance am...

1. Tax-News.com: HMRC's Clampdown On HNWIs Intensifies
01 May 2015
HM Revenue and Customs (HMRC) has intensified its clampdown on suspected tax avoidance
amongst High Net Worth Individuals (HNWIs) through its 'Rising Stars' unit, international law firm
Pinsent Masons said.
The 'Rising Stars' team was created in 2012 to investigate the tax affairs of individuals with rapidly
rising incomes and a net worth of at least GBP15m (USD23m), as well as anyone who has the
potential to meet the GBP20m wealth criteria for the High Net Worth Unit within the next five years.
According to Pinsent Masons, 51 enquiries were launched by the 'Rising Stars' team in 2013-14, up
from 38 in the previous year. Investigations resulted in the collection of GBP6.6m extra tax in 2013-
14, a 35 percent increase on the GBP4.9m collected in 2012-13.

2. Fiona Fernie, Partner and Head of Tax Investigations at Pinsent Masons, commented: "Creating the
Rising Stars team means that HMRC has left virtually no part of the million plus market escaping
scrutiny."
Fernie explained that the HMRC units focused on HNWIs tend to have a smaller ratio of taxpayers to
staff, meaning that resources are more concentrated and investigations bear more fruit. In addition,
sophisticated technology, such as the GBP45m database system "Connect," which collects real-time
data, helps in the identification of HNWIs for investigation. HMRC also made 490 requests for
information on taxpayers from foreign governments in 2013.
Fernie said: "HMRC is now drawing on wider range of information to identify targets for
investigation - those with complex tax affairs and offshore wealth are increasingly likely to come
under the spotlight as a result. Connections between those involved with tax avoidance are now
more easily detected. Taxpayers linked to a particular firm or business may be targeted - if one
hedge fund manager or employee is found to be worthy of investigation, for example, enquiries into
his or her colleagues are likely to follow."
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