CH194150 - Electronic sales suppression: introduction: reason for the legislation

Electronic sales suppression is a form of tax evasion and the technology used to facilitate electronic sales suppression is becoming increasingly more sophisticated. Electronic sales suppression results in a risk to Exchequer revenue.

This means HMRC needs to

• identify electronic sales suppression
• identify the electronic sales suppression supply chain
• prevent the facilitation of electronic sales suppression
• recover tax lost as a result of ESS

In so doing, HMRC will level the playing field for compliant businesses. The powers in Schedule 14 of Finance Act 2022 help us to do this.