Telling tales to the taxman

THE Inland Revenue is paying members of the public for information on tax dodgers. But according to the annual report of the board of the Inland Revenue published yesterday, the taxman last year paid out just pounds 7,050 to a handful of informers.

The Revenue said it had raised an extra pounds 4.7bn - the equivalent of an increase of 2.5p in the basic rate of tax - from its investigations and reviews in the year to 31 March. Of that, pounds 1.6bn came from counter-evasion and avoidance, and the rest from 'technical review work'.

The Revenue will pay informers a percentage of the amount of extra tax collected, but it will not specify exactly how much informers receive in order to preserve the confidentiality of the taxpayer under investigation. It can pay informers up to pounds 50 without having the payment sanctioned by the Treasury.

The payments are part of the Inland Revenue's drive make all taxpayers pay their full dues. 'We have to identify those who do not want to join the club. It is important that these people are detected and made to join,' said a spokesman.

The Revenue has a 'ghostbusters' division which seeks out individuals working in the black economy. Among its targets last year was a group of coach drivers who were selling souvenirs, collecting fees for delivering tourists to particular shops and even changing foreign currency.

The tax trackers, page 32