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The case for increased resources - HMRC performance regarding tax evasion

Association of Chartered Certified Accountants

2 min read Partner content

Statement on HMRC performance regarding tax evasion from Chas Roy-Chowdhury, ACCA head of taxation

ACCA strongly supports the call from the Public Accounts Committee to do more to ‘name and shame’ tax evaders and trusts that HMRC will continue this policy. Tax evasion is illegal and naming those who engage in this practice should be treated just as any other criminal. They are defrauding the entire country by taking money from the treasury – money that could be redistributed to education or the NHS.

HMRC needs continued resource to be able to pursue and prosecute these individuals and companies. Tax evasion, particularly offshore tax evasion, is extremely complicated and can be both expensive and time-consuming to catch those involved. Only through continued resource can HMRC hope to be able to retain the staff necessary for this work.

The case for increased resources is further strengthened through the revelation that HMRC is answer less than 75% of the calls to them, and this has fallen to only half of calls in the first half of this year. This means thousands of people are failing to get their enquiries dealt with, resulting in thousands paying the incorrect amount of tax. The government needs to let HMRC hire more people to answer the phones. It is a case of pay now and reap the rewards later.

Ahead of the spending review it should be remembered that despite the one off budget boosts from the Chancellor HMRC’s budget has been cut year on year since 2010. The very fact the tax gap currently stand at 6.4% is to the credit of the staff at HMRC, they are collecting record amounts of tax but we question how sustainable this is against a backdrop of falling resources. 

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