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
Get this… NO-ONE GIVES A HOOT WHAT YOU THINK OF PENSIONS.
Reviewing your comment history, I see your wont is to attempt to divert each and every thread on this blog to something else. As such, I do not believe for an instant that you are arguing in anything approaching good faith.
~alec
Alec
Sounds like failure to pay tax which they were obligated to have worked-out they owed. That is, tax fraud.
Add to that the stuff about their half-inching tax relief on PAYE employees. And the matter of it – and other of Allen’s companies – being in liquidation.
The word “debt” wasn’t mentioned once in the article, although you just have conceded that it appears liable for £58 millions… a fairly accurate description of debt.
~alec
LB
33 mins. That 54 millions gone. Several times over. Worry as much as you want about 54 million, but its gone.
At 500K a pop for each death, it doesn’t even pay for Stafford hospital killing 1,200.
It’s peanuts in the scheme of things.
Now, you may be a worker for the state, in which case you’ve got bigger things to worry about. Your pension. No amount of 54 million from companies will pay your pension. It’s only 27 GPs pensions.
That puts it in context. If 54 million is such bad news, just scale it up. Your pension won’t be paid. My state pension won’t be paid. End result for lots of people is destitution. But you don’t give a hoot.
LB
It’s 27 GPs pensions. It is peanuts.
If they have been evading tax, then you arrest them and the 15,000 people who didn’t pay the money.
Alec
What the smeg are you talking about, you dim little man? What 15,000 non-payers?
~alec