The taxman has been accused of behaving like the Stasi after sending hundreds of 'intrusive' letters to wealthy people asking them to reveal what they own.
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they → accuse → what
Officials from HM Revenue & Customs' 'Wealthy Team' are asking Britain's richest people to give them details about their properties, trusts, companies and other personal holdings.
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Officials → ask → properties
The three-page letter asks for a meeting in person or online and states the HMRC official's role is to 'build a clear understanding of your tax affairs, including your business interests, investments and wider financial arrangements'.
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role → ask → interests
It contains a 'suggested agenda' of their background and history 'including sources of wealth' and an 'overview of your wider affairs'.
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It → contain → affairs
One question asks: 'Have you undergone any significant life events or undertaken any complex or novel transactions within the last 12 months which may impact your UK tax position?'
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which → ask → position
HMRC's 'Wealthy Team' department looks after Britain's 1.5 per cent wealthiest people who have 'incomes of £200,000 or more, or assets equal to or above £2m in any of the last three years'.
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who → look → years
According to the government department, 'wealthy individuals may present a higher risk of error than other customers as the amounts involved are greater also because they may have investments in more than one country, making their financial affairs more complex'.
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affairs → accord → country
But a UK-based billionaire who received the letter, as reported by The Sunday Times, said: 'Who do these people think they are, the Stasi?
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they → base → Times
This will only encourage more people to leave.'
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This → encourage → people
The taxman has been accused of behaving like the Stasi after sending hundreds of 'intrusive' letters to wealthy people asking them to reveal what they own (stock photo)
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they → accuse → what
Kelly Greig, a partner at law firm Kingsley Napley, said some of her clients had received the letters and that it 'represents a sea change'.
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it → say → change
Meanwhile, David Lesperance, a global tax and immigration adviser, said 'no other G20 country asks for this level of detail from its taxpayers about what they own'.
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they → say → what
He said: 'The letters almost look like a scam email to extract information from sophisticated people who are unlikely to fall for something like this.'
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who → say → this
Recent figures from the Bloomberg Billionaires Index revealed billionaires with £120billion to their names have fled Britain since Labour came to power.
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Labour → reveal → power
Analysis showed half the group – who have headed for destinations such as Switzerland, the United Arab Emirates and Monaco – fled in the weeks leading up to the introduction of sweeping tax reforms in April last year.
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who → show → April
The biggest hit came from the departure of Indian steel tycoon Sir Lakshmi Mittal, who upped sticks last year for Switzerland and Dubai taking his £31billion fortune with him.
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who → come → him
Also quitting Britain was Shravin Bharti Mittal – son of Indian businessman and BT’s biggest shareholder Sunil Bharti Mittal – who left with his £18billion share in the family fortune
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who → quit → fortune
More recently it emerged that hedge fund tycoon Chris Rokos, who is worth £3billion, is moving to Greece.
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who → emerge → Greece
Mr Rokos paid £330million in taxes last year, making him Britain’s third-biggest taxpayer according to The Sunday Times.
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him → pay → Times
An HMRC spokesperson said: 'We want to help all customers get their tax right, including the UK's wealthiest people.
'
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tax → say → people
We've had dedicated customer compliance managers for wealthy individuals for several years, allowing us to identify and address tax risks effectively.'
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us → have → risks
HMRC is to be handed sweeping new powers to take money directly from the bank accounts of people who fail to pay their taxes under plans expected to be announced at the Budget.
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who → hand → Budget
The taxman will be able to automatically deduct payments from current and savings accounts without obtaining a court order as ministers attempt to recover £4billion in unpaid debts.
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ministers → deduct → debts
Chancellor John Healey is expected to unveil the crackdown targeting millions of individuals and businesses who owe relatively small sums but repeatedly ignore demands for payment.
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who → expect → payment
Under existing rules, HMRC can only seize money directly from accounts if the taxpayer owes more than £1,000 and is left with at least £5,000 after the debt is recovered.
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debt → exist → 5,000
But the threshold could now be slashed to just a few pounds, with officials also able to recover outstanding fines and interest.
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officials → slash → fines
HMRC estimates that around 4.8million individuals and businesses owe less than £10,000 each, with their combined debts totalling £4billion.
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debts → estimate → 4billion
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