| Taxing
taxis
(24/6/2004)
Ireland
announces clampdown on tax-cheating
drivers, while a Dundee driver is
disgraced.
Ireland's
transport Minister Seamus Brennan has
announced a crackdown on taxi drivers
who do not pay their tax dues.
Under the new scheme every taxi driver
will have to apply for a clearance
certificate from the Revenue
Commissioners before they can have their
licenses renewed.
The
measure had been recommended to Mr
Brennan by the National Taxi Council,
and was one of a number of initiatives
intended to encourage a more
professional taxi service and provide a
proper level of income for drivers.
Welcoming
the move, Vinny Kearns, vice-president
of the National Taxi Drivers' Union,
said that while the majority of drivers
were tax-compliant, up to 3,000 drivers
had a full time job and were working in
the taxi 'black market' and using the
extra income to buy a nice car or go on
holiday.
Mr
Kearns added: "This is unfair to
our members, and is putting the
travelling public at risk. They
are not fit to drive if they are doing a
full-time day job elsewhere."
Also
on the way in Ireland are a clampdown on
criminals in the taxi industry and the
removal of drivers' exemption from
wearing seatbelts.
UK
getting tough?
There are are also indications that
the the UK authorities are getting tough
on the tax cheats. Six months ago
the Inland Revenue told moonlighting
taxi drivers to watch their step
following a groundbreaking prosecution.
Mark
Brown of Darlington was given a 12 month
conditional discharge from Auckland
Magistrates Court after he failed to
tell the Inland Revenue about his
business as a self-employed taxi
driver. Mr Brown, who was in
full-time employment, evaded duty of
over £2,400 and was also claiming
Working Families Tax Credit. He
was the first person in England
prosecuted under
provisions in the Finance Act 2000
relating to the fraudulent evasion of
income tax. The Inland Revenue
also said that it was taking civil
action against Mr Brown to recover the
lost tax.
In
a March 2000 report to HM Treasury
titled The Informal Economy, Lord
Grabiner QC recommended more
prosecutions of people working in the
black economy, leading to the new
statutory offence of 'fraudulent evasion
of income tax' being included in the
2000 Act.
In
his report Lord Grabiner said: "Typically,
businesses in the informal economy tend
to be low-wage and labour-intensive,
often with a seasonal or irregular
element to their work.
Examples include:…taxis and
mini-cabs…"
Dundee
driver disgraced
Meanwhile, a Dundee taxi driver who
admitted defrauding the Department of
Work and Pensions of over £45,000 had sentence
deferred for reports.
James
Orr had pretended to be unable to work
through incapacity between 1996 and
2003, receiving incapacity and
invalidity benefit totaling £45,544.
The
court heard that Mr Orr had been working
up to 20 hours a week for Mitchell's
Taxis in Lochee (now part of Tele Taxis)
but had not disclosed this fact to the
DWP.
Click
here to read views on this topic or post
your own
|