HMRC has published a summary of responses to its call for evidence on how technology is being exploited to manipulate electronic sales records in order to hide or reduce the value of transactions.
Key findings from the consultation include the following:
in general, respondents believe that electronic sales suppression (ESS) is a fairly prevalent form of tax evasion;
some sectors are at higher risk than others, with respondents suggesting that small independent retailers, takeaways and the hospitality sector are particularly affected;
some businesses have asked system manufacturers and software providers to include ESS functionality in their till systems;
potential solutions might include mandatory use of HMRC-approved software, or hardware capable of sending transaction-level data direct to HMRC, although it was noted the cost to business might be prohibitive.
HMRC has published a summary of responses to its call for evidence on how technology is being exploited to manipulate electronic sales records in order to hide or reduce the value of transactions.
Key findings from the consultation include the following:
in general, respondents believe that electronic sales suppression (ESS) is a fairly prevalent form of tax evasion;
some sectors are at higher risk than others, with respondents suggesting that small independent retailers, takeaways and the hospitality sector are particularly affected;
some businesses have asked system manufacturers and software providers to include ESS functionality in their till systems;
potential solutions might include mandatory use of HMRC-approved software, or hardware capable of sending transaction-level data direct to HMRC, although it was noted the cost to business might be prohibitive.
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