Public Accounts Committee report on HMRC - reaction

Chas Roy-Chowdhury, ACCA head of taxation, said:

“It’s easy to point the finger at HMRC and tell it to try harder. However, HMRC is facing a squeezed budget like so many other public sector bodies. While large corporations have the latitude to legally avoid tax, the public mood considers this practice unethical and inappropriate. However, it is up to Government to clarify the rules and close any existing loopholes. HMRC is trying to fulfil their existing remit – to collect taxes. Blaming HMRC for not closing loopholes that benefit multi-nationals that exist in law suggests a misunderstanding of how the tax system works.

“It is encouraging, however, to see the PAC praise HMRC on their implementation of real-time information. Finance professionals and payroll teams are generally satisfied with the initiative’s implementation and we certainly echo that praise.”