That there would have been any surprise beggars belief. The decline in returns is an obvious consequence of lower profits but there is something else going on. The Revenue got their instructions to soft-pedal on kicking widows and orphans out into the street. They phrased it as a greter willingness to make arrangements for tax arrears. Culturally it took them a while to get used to this. When you've spent your days going round in dark glasses threatening that Luigi might drop your TV, it's hard to change tack.
But now they are actually quite reasonable and their interest rate (3.5%) is pretty damned friendly. Increased overdraft at 10% or string the taxman along at 3.5%? Not hard to see why people are spinning things out. They will get their money (well most of it anyway), but just on a deferred basis. Look for an even worse decline in tax take in July and August when instalment payments are due and people fail to pay or make fresh arrangements.
Tax Take
Date: 2010-07-20 04:22 pm (UTC)But now they are actually quite reasonable and their interest rate (3.5%) is pretty damned friendly. Increased overdraft at 10% or string the taxman along at 3.5%? Not hard to see why people are spinning things out. They will get their money (well most of it anyway), but just on a deferred basis. Look for an even worse decline in tax take in July and August when instalment payments are due and people fail to pay or make fresh arrangements.