How could that have happened? How could HMRC have reached the point where it cannot chase that much tax? How limited are resources is this is the case?
By Richard Murphy, founder of the Tax Justice Network
“A TEMPORARY employment agency has gone into liquidation owing HM Revenue & Customs (HMRC) £58 million in unpaid tax.
“Edinburgh-based Employ-E, a division of Legitas Group which is also in liquidation, is owned by lawyer David Allen, who is reported to own a golf course and mansion house in the Borders.
“Employ-E had about 60,000 low-paid temporary workers on its books, who it supplied to recruitment agencies throughout the UK.”
The real question here is, how could that have happened? How could HMRC have reached the point where it cannot chase that much tax? How limited are resources is this is the case?
There is also another question, which is, of course, where is the money? An agency should have been reimbursed all costs including tax. How could it lose that much money?
In the case of both questions surely HMRC should have been on top of this? If not I can only put it down to under-resourcing.
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71 Responses to “How can a company go bust owing £58 million in tax?”
Alec
You might think others here are dim enough to be taken in by this sophistry, but they’re not. We find it pathetic.
Except that’s not what you’ve been saying. You’ve been explicitly arguing against those who said they should.
I’m not sure if this is conscious lying or if you are genuinely incapable of cottoning-on to how others see you, like a right-mindest sailing serenely on.
You seem pathologically incapable of being straight about your own argument. There isn’t much point in taking anything you have to say seriously, is there?
~alec
Alec
This isn’t even a questionable interpretation of my comments. It’s something you’ve completely made-up. You are a liar.
This conversation is over.
~alec
LB
5K a year, going to fund your salary and pension, and not the needs of the poor.
Not taxing the poor is the biggest thing that can be done to make the better off.
The next one is to allow them to invest their NI and not have it spent on Civil servants and the Philpotts of this world.
By investing that money they get far more, nearly 5 times as much money when they retire.
However, you would probably be looking for a job. Without the poor to fund your life style you would be stuffed.
You complain about someone setting up a company so people can get their money back from you. However, look at the state. Take the DWP.
5% of the money they adminster goes in costs. You can check their accounts since you don’t believe anything that threatens your livelyhood.
Given the thousands handed over in NI, those people on living wages are paying huge amounts in hidden fees. Your salary I presume.
Alec
I told you this conversation is over. There is no way you can be trusted when you take my comments here and present them as anger that the 15,000 workers are paying less tax… you’re a fucking liar.
You think that word’s howwid? So the fuck what? Manners maketh the man, and you have none.
~alec
LB
Still not arguing with facts, resorting to ranting and raving.
Ho hum.
They are paying less tax. They are paying less tax because they were paying tax on gross income, not on income after expenses have been deducted.
No doubt you object to the little people doing what MPs and the rich have been doing for a long time.
Here we’ve a great example of what happens when people get together to take on the state. They’ve grouped together, and they are paying less tax as a result.
Very difficult for the state. It agrees one of the workers expenses, so all can now claim. With the group, they all do. If the state doesn’t like it, it has a problem HMRC cannot appeal their own judgements, so they have to change the law.
It’s going to happen more and more.
What you will also get is other companies getting on the band wagon. Telling their employees how to claim, and making it easy for them to do so.
It’s the cooperative of people getting involved in dealing with people taking money from them. With 15,000 workers, even by contributing a small about, its very hard for the HMRC to take them on. They can now afford serious lawyers. The HMRC may well view, here’s a lot of money we can steal back to pay our wages, or it can think, ah, if we lose, them lots more will get in on the act.
The game’s changed. It’s not employer/employee any more. It’s citizen versus the state, and the state is trying to screw people.