CHALLENGE AND CONTROVERSIES FACE BY HMIC IN RESPECT OF TAX EVASION AND TAX AVOIDANCE

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Declaration of Authenticity

Here I would like to declare that all the information included in this dissertation is based on my individual work without any help from any other party. This dissertation has not been submitted for any examination, at academic as well as professional level previously. It is also representing my own views and they are not associated with any institution or individual member of this country.

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Informative Abstract

The research report is conducted on the topic; facing the challenges and controversies by HMIC in order to avoid tax evasion and tax avoidance practices by the public. In recent times it has been the main agenda of the UK government to take measures or establish bodies that could ensure transparency in practices so that people are able to pay correct amount of taxes so that a free and fair environment could be implemented in the society. Therefore in order to resolve the problem statement of the study, secondary sources were used to find out the current challenges and scandals faced by HMIC. The qualitative and quantitative data collected related to the research topic was able to conclude that there are different challenges faced by the government in order to collect estimated amount of taxes during a fiscal year. The study also investigated that there are different procedures followed by the individual member of the society to avoid paying taxes. In conclusion, the study recommended that it can be stated that the government officials are enabling to ensure that people should not adopt corrupt practices and should pay accurate amount of taxes so that criminal activities should reduce in the society.

INFORMATIVE ABSTRACTIII

ABBREVIATIONSV

CHAPTER 1: INTRODUCTION1

1.1 Research Topic1

1.2 Aims and Objectives1

1.3 Terms of References2

1.4 Background2

CHAPTER 2: LITERATURE REVIEW4

2.1 Tax Gap5

2.2 Characteristics of the Economy6

2.3 Awareness Campaign7

2.4 Identification of Individuals and Organizations7

2.5 Controversies8

2.5.1Measures used by Individuals and businesses9

2.5.2 Actions of HMRC and HMIC10

CHAPTER 3: RESEARCH METHODOLOGY15

3.1 Research Design15

3.2 Overview of Project Methodology17

CHAPTER 4: FINDINGS AND DISCUSSION18

CHAPTER 5: CONCLUSIONS20

BIBLIOGRAPHY21

PIE-CHART REFERENCE22

APPENDICES24

Questionnaire24

Abbreviations

CRCA……………………………………...………….Commissioners for Revenue and Customs

GAAR……………………………………………………….…………..General Anti-Abuse Rule

HMIC……………………………………………….Her Majesty's Ispectoratede of Constabulary

HMRC………………………………………………………Her Majesty's Revenue and Customs

SOCA………………………………………..………..........Serious and Organized Crime Agency

Challenges and controversies faced by the HMIC in respect of tax evasion and tax avoidance

CHAPTER 1: INTRODUCTION

Research Topic

The proposed research topic is, “challenges and controversies faced by HMIC in investigating tax evasion and tax avoidance activities”.

Aims and Objectives

The major aim of the study is to find out the issues faced by HMIC in conducting their inspection to ensure that the public is paying all their taxes and they are not using methods to avoid paying their tax or do not pay the correct amount of tax. The research study will also try to find out the controversies faced by HMIC regarding the inspections conducted in order to avoid tax evasion and avoidance by the public to pay accurate amount of tax. Thus the problem statement of the study played a significant role in finding out the efforts of HMIC in reducing tax evasion ...