Online sellers who make money from eBay to be targeted in 'one of the biggest tax crackdowns in history'

Online sellers who use websites such as Ebay to make money but don’t declare it will face one of the ‘biggest tax crackdowns in history’, it was reported last night.

As part of plans to obtain details of millions of online transactions, the HMRC wants to collect ‘bulk’ information from internet companies to target thousands of people who fail to declare income they make online.

This failure costs the taxman billions of pounds every year.

The new powers will give the HMRC access to information from Paypal, the online payment company owned by Ebay, smartphone app stores run by Apple and Google, holiday comparison websites and other online retailers.

Snoopers charter: HMRC wants to collect ‘bulk’ information from internet companies to target thousands of people who fail to declare income they make online

It means that thousands of Britons who let out their homes on the internet or sell good on eBay without paying tax will be targeted and have their affairs scrutinised.

A consultation document published by HMRC reveals the taxman will be able to use the powers to collect the names, addresses and revenues of any businesses which use the websites.

They will then compare the information with tax returns filed by the businesses and use it to pursue those who have failed to pay.

Senior tax accountants said the scale of the data collection is ‘huge’ and amounts to a ‘radical’ change in the way that HMRC conducts its business.

The accountants also raised concerns about the ability of HMRC to handle so much information and warned that the ‘huge’ databases will have significant security and privacy risks.

HMRC insisted that it will only collect data about businesses that use the internet to sell goods and services rather than those who are buying it.

An HMRC spokesman said: ‘We want businesses to pay their fair share and ensure legitimate traders are not left struggling to compete against tax cheats.

’That’s why we’re consulting on updating HMRC’s existing data collection powers for the digital age.

‘The information will only be used to identify businesses that are breaking the law by evading paying the tax they owe. We cannot find out what people buy, only what businesses have sold, but not declared.’

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McDonald's profits fall 13 percent as the fast food giant records its seventh straight quarterly decline

McDonald's is looking at variety of changes to win back customers in the U.S.: A new value message to replace the Dollar Menu, breakfast all day, and nips and tucks to improve the taste of its burgers.

'There is no silver bullet. No one move will turn a business that has been in decline for nearly three years,' CEO Steve Easterbrook said Thursday during a conference call with analysts and investors.

The remarks came after the company reported a 2 percent drop in sales at established U.S. stores for the three-month period ended June 30, marking the seventh straight quarterly decline in its flagship market.

McDonald's said customer visits slipped as promotions failed to live up to expectations. 

Among the offerings during the period were sirloin burgers, which were featured in ads with a revamped Hamburglar character.

Overseas, McDonald's Corp. said the sales figure rose 1.2 percent in Europe. It fell 4.5 percent in the segment including Asia, the Middle East and Africa, as China continued to recover from a supplier issue.

On a global basis, the figure dipped 0.7 percent. Looking ahead, Easterbrook said the company expects improvement in major international markets to help turn global sales positive in the third quarter.

But he noted that the U.S. remains a 'little bit of a drag.' He said the company has been particularly hurt by its move away from the Dollar Menu, since it wasn't replaced with anything as compelling.

To help fill that void, McDonald's started promoting a $2.50 deal for a double cheeseburger and fries in June. But Easterbrook said during the call that the offer wouldn't satisfy the need for a national replacement for the Dollar Menu, and that the company is exploring options on that front.

David Palmer, an RBC Capital Markets analyst, noted that the company's move away from the Dollar Menu has diminished the impact of its national advertising without a value message.

Still, Palmer said in a note to investors that he thinks change is happening at McDonald's at a faster pace than in the past.

In the meantime, Easterbrook stressed the importance of the small changes the company is making to improve the taste of its food, such as toasting buns longer and searing burgers to lock in flavor.

'That gets noticed by customers,' he said.

Another sales driver in the longer-term could be making popular breakfast items like the Egg McMuffin available all day. The idea is being tested in San Diego, and Easterbrook said the company is looking at how to simplify other parts of restaurant operations to ensure the offering would work more broadly.

McDonald's, which has more than 36,000 locations around the world, is trying to regain its footing after seeing its profit sink 15 percent last year.

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World Bank urges China to embrace basic financial reforms

The World Bank has urged China to carry out fundamental reform of its state-dominated financial system to keep economic growth on track.

The bank said Wednesday that the communist government needs to address wasteful investment, over-indebtedness and weak regulation of its shadow banking system. It said failure to do that could "deflect the economic trajectory" of the country.

The recommendations echo those of private sector analysts who say Beijing needs to overhaul a government-run banking system that subsidizes state industry at the expense of savers and that provides little credit to entrepreneurs and emerging industries.

The World Bank said Beijing needs to separate its roles as owner of China's banks, regulator and strategic planner and to construct a system that channels more lending to productive industries and manages risks better.

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