How can a company go bust owing £58 million in tax?

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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

The Scotsman has reported:

“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.

71 Responses to “How can a company go bust owing £58 million in tax?”

  1. LB

    More made up stats.

    More ranting and raving because you can’t enter into a debate about who is making people poor.

    So are you going to say whether or not your living is dependent on money coming from the poor being taxed?

    Nothing like a hypocrite who will make people poor, but condems the result.

  2. Alec

    Go away you strange and unpleasant man. You are of the same moral caliber as a stalker.

    ~alec

  3. LB

    You might not have realised what the state has done to your civil service pension.

    The CPI from RPI change has knocked 15% off your income in retirement. The farther you are from retiremen the bigger the hit.

    Then on top, they are stinging you for extra payments. Not, by the way for your benefit. Nope, the money’s going to existing pensioners. By the time its your turn, well, its going to be a choice between paying you lots of money, or the NHS or some other common good.

    Do you think you are going to be able to out vote people wanting their state pension,whilst you retire on a large salary.

    Ah yes, that nice friendly state will look after you, won’t it, you hope.

    Ever asked why MPs are not in the civil service scheme? Why they have their own funded scheme, unlike the unfunded civil service one? Why when there was a short fall, they dipped into the tax payer’s money for more.

  4. Alec

    For anyone who’s not a complete and utter weirdo with all the personal ethics of strange and unpleasant tosser, go here to discuss Allen et al..
    ~alec

  5. blarg1987

    There is a big diffference between doing the payroll of 15,000 people a week and culpuable in avoiding tax on 15,000 a week.

    It is like with this CQC thing people are being accused have been named in an alleged cover up, they are not guilty of a cover up which is two entirely different things.

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