The number of appeals being put to tribunals by UK taxpayers has risen markedly over the past 12 months, it has been revealed.
According to a new report issued by UHY Hacker Young, 2008 saw the number of tax tribunals being brought about by taxpayers who believe that they have either been charged over the odds or unfairly punished increase by 14 per cent.
The report attributes this rise in the number of cases being dealt with by the VAT and Duties Tribunals and Special Commissioners largely to the HMRC's tougher stance on evasion.
In particular, the recent streamlining of the government department's operations means it now has more resources to get tough on taxpayers not paying the correct amount, while the tougher tactics being used and higher penalties being imposed are also prompting individuals to go further with their appeals.
"HMRC seems to be less and less deterred by the cost of litigation," explained Roy Maugham, a tax partner at UHY Hacker Young.
"It is now much more prepared to go all the way through the tribunals rather than negotiate a fair settlement with the taxpayer as it used to."
Recently, HMRC announced a tougher stance on medical professionals who fail to declare all of their sources of income for tax purposes.
