Scotland's builders could be about to take on a new workload and a very unwelcome one. For the Inland Revenue's Spend to Save initiative, which aims to recover #5bn of extra tax, has targeted the construction industry north of the border.

A new sub-contractors unit has been set up at Centre 1 and it will

co-ordinate its investigations with the Large Business Offices in Glasgow and Edinburgh.

The LBOs across the country are responsible for raising millions in revenue and they are stepping up their efforts to target avoidance, serious fraud, wealthy directors and employee tax compliance.

The best returns come from targeting those who provide poor-quality tax information because of inadequate systems.

Construction is regarded as fertile ground because companies in that sector deal with complex accounting rules on stock valuation, long-term contracts, profit recognition, expenses, travel and subsistence and the sub-contractors scheme.

''The Revenue is concentrating on areas with a relatively high risk of loss through

non-compliance,'' said Margaret Stephens, head of accountants KPMG's construction unit in Edinburgh. ''These include companies with a history of submitting tardy or incorrect returns or where they have incorrectly applied tax law.''

Investigations are becoming much more commonplace and the burden of proof is shifting more and more on to the business.

''This means companies should take time to ensure they are on the ball. If not, they could pay a heavy penalty.''