What does the tax inspector do?
The tax inspector works in the UK and helps the tax collection authority to ensure that everyone pays their fair share in taxes. The tax collection authority is called the HM Revenue & Customs (HMRC) and its liability is to assess the income tax for the payment of provided public services, including the National Health Service (NHS) and other programs of public services, police departments, fire brigades and military defense. HMRC works similarly to the Internal Revenue Service (IRS) in the United States, and the tax inspector performs a similar function as the IRS agent in the US.
The first tax inspector's obligation is to find out when it is likely that the person does not pay all the taxes owed by HMRC. Inspectors do this by reviewing tax returns and attempting to identify red flags that indicate that the individual is guilty of tax evasion. These red flags may exist if the tax deductions are disproportionate compared to their income or when a person in primarIly Cash business has income in line with what would be expected. There may also be other red flags that attract the eye of the tax inspector, but HMRC does not fully reveal this information what will cause the investigation.
If there are red flags, the tax inspector will contact the person and audit to see if the relevant tax amount has been paid. He can visit individuals and interview with witnesses or review bank statements and other sources of data on the income and taxes paid. If tax evasion has occurred, the tax inspector identifies it and reports the HMRC problem. The relevant taxes will then be collected.
The tax inspector may also be involved in a court action for tax evasion of HMRC. These are tribunals, it is basically a situation where a person is prosecuted for tax evasion. Inspector can submit the evidence he revealed, which led toaccusations of tax evasion. In the court, he will testify and otherwise help HMRC to prove his case of tax evasion against the accused. Since income taxes play an important role in maintaining the economy in the United Kingdom over water, tax inspectors serve an important function in society.