Concern over tax inspector incentives

Concerns have been raised over new plans that could see tax inspectors across Great Britain and Northern Ireland receive incentives for finding further taxable funds.

Under proposals from HM Revenue and Customs (HMRC), tax inspectors could be put onto incentive schemes that will result in them receiving bonuses for uncovering funds that can be taxed, whether that be for income tax, capital gains tax or inheritance tax.

However, some have raised concerns over the plans, which could see solicitors called upon to carry out more deliberations in the areas of inheritance tax, income tax or capital gains tax.

There are fears that the move could result in over-zealous inspectors, actively searching out more individuals for investigation without any real need.

According to recent research from the Institute of Fiscal Studies (IFS), the average family paid £200 more in taxes during 2006 than they had done the previous year.

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