HMRC targeting “app economy” in crackdown on tax evaders

 
Clara Guibourg
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HMRC wants to extend its data-gathering powers to Apple and Google's app stores (Source: Getty)

HMRC wants to extend its data-gathering powers to be able to access data from Google and Apple app stores.

The state tax collector wants to tackle tax evasion in the “app economy” using data from app stores and online platforms as it believes that this will provide information on digital businesses that have not declared full value of their sales.

Roy Maugham, tax partner at accountancy network UHY Hacker Young, commented that this shows HMRC believes there is “large-scale” tax evasion in this sector.

The digital economy generates huge profits and HMRC clearly believe that they can raise additional revenue by targeting the sector – this is the latest in a long line of aggressive moves by HMRC to boost tax intake.

HMRC’s plans come after already extending their powers to “digital wallets” and similar online payment methods.

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