Watching this from Canada. Here the tax year for individuals is based on the calendar year while for corporations it can be based on a non-calendar year fiscal year end. The Canada Revenue Agency (CRA) requires corporations who paid dividends to issue T5 slips to each shareholder (with a copy sent to the CRA along with a slip summary) summarizing the types (eligible vs non-eligible) and amounts of dividends paid to them during the calendar year. The shareholder then uses this slip to report their dividend income on their tax return. During each year, the CRA has what they call a "slip matching program" where they would match the income reported on each individual's tax return to the tax slips generated for that taxpayer. Should a taxpayer fail to report such income, their return would automatically get reassessed and the taxpayer would get a notice asking them to pay the difference in tax plus interest and penalties as applicable.
Watching this from Canada. Here the tax year for individuals is based on the calendar year while for corporations it can be based on a non-calendar year fiscal year end. The Canada Revenue Agency (CRA) requires corporations who paid dividends to issue T5 slips to each shareholder (with a copy sent to the CRA along with a slip summary) summarizing the types (eligible vs non-eligible) and amounts of dividends paid to them during the calendar year. The shareholder then uses this slip to report their dividend income on their tax return. During each year, the CRA has what they call a "slip matching program" where they would match the income reported on each individual's tax return to the tax slips generated for that taxpayer. Should a taxpayer fail to report such income, their return would automatically get reassessed and the taxpayer would get a notice asking them to pay the difference in tax plus interest and penalties as applicable.
In a few years time when ‘MTD’ ( Making Tax Digital) kicks in over here for income tax I suspect something similar may be introduced
Why don’t HMRC just investigate these people or do they want people to trip themselves up?
They don’t have enough money