The new head of HM Revenue and Customs, Mike Clasper, has made ‘closing the
gap’ one of four top priorities he has set the tax authorities.
The others are improving data security, raising the ‘customer experience’
and providing a new sense of direction for HMRC staff.
He spelled out his objectives in a foreword to the HMRC Autumn Report for
2008 in which he described these priorities as ‘central’.
Direct tax gap estimates showed that between 1999 and 2003 it increased from
11% to 15% of liabilities before declining slightly at a time when there was an
overall increase in SA liabilities related to the self-employed.
The report said the percentage VAT gap had fallen between 2002-03 and risen
in 2005-06 before falling again, with the reducing trend related to a
decline in Missing Trader Intra Community Fraud, estimated to have fallen
from £2.5 – £4.5bn in 2006-06 to £0.5 – £2bn in 2007-08.
Estimates showed the gap for income tax and national insurance collection
from firms with up to 500 employees has declined slightly from 1.1% of
liabilities in 2003-04 to 1% in 2004-05.
The gap estimated for corporation tax, covering firms not dealt with by the
Large Business Service, has varied between 15% and 18% between 2001 and 2003 but
fell to 9% in 2004, but the report warned of substantial sampling error and
suggested the gap is stable.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states