Reporting Tax Evasion

You can report someone to the Income Tax Division if you think that they might be evading tax. For example, they might be:

• failing to declare all of their income to the Division
• accepting cash payments without giving receipts – thereby keeping some of their income 'off the books'
• carrying out a 'hobby' but receiving money for it – e.g. playing in a band, 'upcycling' or making craft items
• doing work for friends and family as 'foreigners'
  
  

 

What should I do if I suspect that someone is not declaring income?

If you think that someone is receiving money that they might not be paying income tax on you can make an anonymous report to us in four ways:

• Use the above electronic form
• by post— Income Tax Investigations Team, Income Tax Division, Bucks Road, Douglas, IM1 3TX
• emailing us at incometax.confidential@treasury.gov.im
• call 685400 and ask speak to a member of the investigations team

What information will be useful?

Tell us information about the person you think is failing to declare income, including:

• what the source of income is
• how long you think they have been trading
• what supporting evidence you have
• what evidence is publicly available
• where are they are trading from
• names of anyone else who may be working with them
• details of any vehicles they use as part of their work

You do not have to give us your name or any other personal details if you don’t want to.

What will happen if I report someone for tax evasion?

All information provided by you will be treated as confidential.

For reasons of confidentiality, we cannot give you any feedback on any specific case that you have reported to us. However, if we do find that tax evasion has taken place then we take this matter very seriously.

Most taxpayers are honest and declare all details of their income to the Income Tax Division. Those who don’t and are caught out will suffer financially and will be made to pay not only the additional tax due but also a penalty that is based on their cooperation with any enquiry.

People who do not pay their income tax have a direct effect on those who do. Any additional revenue raised by uncovering tax evasion can be used elsewhere. Tax evasion can result in criminal prosecution and, in extreme cases, a custodial sentence.