“The latest figures show that tax fraud costs the UK £16bn a year.
HMRC plays a vital role in tackling tax fraud and the PAC has rightly
highlighted a number of areas where HMRC could do
more to address the challenges in this area”.
“ICAEW supports Government efforts to tackle tax fraud. However, the UK tax system is already struggling to cope with the demands being placed on it. Our tax code is overly complex and places a significant regulatory and compliance burden on taxpayers, particularly on small businesses whose focus should be on contributing to economic growth. Our experience of HMRC is that it is also struggling to cope, being caught in the crossfire of having more demands placed on it while having its budget and headcount reduced. While HMRC should be challenged ‘to do more with less’, we think there is a limit to what can be achieved without more resources being made available”.
“In order to do more to tackle tax fraud and reduce the tax gap, Government needs to consider further investment into HMRC, not just to reduce the tax gap but also to provide a more efficient and effective tax system, as good tax administration underpins good tax compliance. We should remember that HMRC is in the process of further restructuring and has a new leadership team. This is in addition to many years of constant cuts to budgets and staff which have affected its performance and its ability to chase down tax fraud. If HMRC is to successfully reduce the tax gap while improving its administration of the tax system for all taxpayers, it needs to be properly resourced.”
more to address the challenges in this area”.
“ICAEW supports Government efforts to tackle tax fraud. However, the UK tax system is already struggling to cope with the demands being placed on it. Our tax code is overly complex and places a significant regulatory and compliance burden on taxpayers, particularly on small businesses whose focus should be on contributing to economic growth. Our experience of HMRC is that it is also struggling to cope, being caught in the crossfire of having more demands placed on it while having its budget and headcount reduced. While HMRC should be challenged ‘to do more with less’, we think there is a limit to what can be achieved without more resources being made available”.
“In order to do more to tackle tax fraud and reduce the tax gap, Government needs to consider further investment into HMRC, not just to reduce the tax gap but also to provide a more efficient and effective tax system, as good tax administration underpins good tax compliance. We should remember that HMRC is in the process of further restructuring and has a new leadership team. This is in addition to many years of constant cuts to budgets and staff which have affected its performance and its ability to chase down tax fraud. If HMRC is to successfully reduce the tax gap while improving its administration of the tax system for all taxpayers, it needs to be properly resourced.”
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