HM Revenue & Customs is to start cracking down on those who provide inaccurate information on their VAT return by issuing penalties that could be more than 100% of the correct amount of tax due, says Mazars. Fiona Hotston Moore, London managing partner at Mazars, said HMRC is acting as 'part of a sustained move by the government to come down hard on those it believes are not complying with the VAT system'. HMRC will be targeting those individuals who knowingly understate their tax liabilities by inflating any tax losses or making a false claim for the repayment of tax. Taxpayers will also be facing more pressure from 2010 onwards when HMRC will have additional power through the Finance Act to come down on third parties who purposefully withhold information or supply false details to a taxpayer who has to complete a VAT return. Hotston Moore advises individuals who are sending in VAT-related information to make sure they seek professional advice to 'avoid potentially being on the wrong end of a quite hefty fine from the authorities, either now or in the future'.