HMRC need to do more to tackle tax fraud, says report

17 December 2015

TAX MONKEYS People doing fraud are responsible for nearly half of Britain’s lost tax revenues, according to a new report. That same report says that HM Revenue & Customs aren't doing enough to crack down on it.

However, the NAO have said that there are improvements, but HMRC haven't published estimates of where these improvements are coming from, making it “inherently challenging for HMRC to understand whether it is using the best mix of measures to tackle tax fraud in the long term”.

"HMRC has met its targets to raise more tax revenue in the short term. It now needs to consider whether its overall strategy is designed to achieve the best long-term outcomes,” said Amyas Morse, head of the NAO.

"We will be evaluating HMRC’s performance in tackling different types of tax fraud in more depth. As we do so, we will be looking for further improvements in the way HMRC uses data and analysis to understand the effect of its actions in both the long and short term."

There's another worry too - the NAO have voiced concerns that HMRC had looked at easier prosecutions in a bid to meet targets, rather than solve the problem in hand.

This follows the news that HMRC are doing a huge overhaul, closing 170 regional offices and replacing them with fewer, bigger hubs.

"HMRC is cracking down on tax avoidance and evasion with a wide range of civil and criminal interventions to collect and protect revenue for public services, steadily reducing the tax gap to its lowest-ever level,” said the Revenue. Over the next decade, we'll see if their plan has worked out or not.

TOPICS:   Investments   Tax

1 comment

  • warwick h.
    Go for the little guy with his E Bay account, turn a blind eye to Costa, Amazon. E Bay, Starbucks,McDonalds etc etc etc.

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