HMRC tax fraud strategy criticized by committee

19th April 2016

HMRC is not doing enough to tackle tax fraud, according to a report by the Public Accounts Committee (PAC).

Findings show that tax fraud is creating losses of around £16 billion a year, almost half of the £34 billion tax gap. 

The level of tax fraud losses has remained constant over the last 5 years – accounting 3% of all tax liabilities.

The PAC has criticized the lack of strategy for dealing with tax fraud, describing the department’s reporting of its own performance as “too confusing“ and unclear.

Nigel Holland from Holland & Co Chartered Accountants said:

“ The level of tax fraud is completely unacceptable. It is very high and there should be measures in place to reduce the figure of £16billion.

HMRC needs to focus on reducing this uncollected tax and it is only fair that if honest tax payers pay the correct amount of tax on time that they should expect other tax payers to do the same.

HMRC must be more open with the public and Parliament as to how it plans to reduce the tax gap.”

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