Edward Leigh, chairman of the PAC, said the government should also take advantage of the impending merger to improve data matching to identify traders in the black economy.
These comments come after it was revealed that a whopping £11bn in VAT was lost due to error and fraud.
The government has set a target to cut the amount lost through fraud and error from 15.7% to 12% of the total VAT take.
IR35 employment status tax rules may result in workers losing part of their income, says professional body
Committee expresses concern about costs to businesses and April 2018 implementation date
Drastically fewer offices for HMRC in the hope to reduce their running costs
An 80% increase in additional revenue for HMRC coincides with a crackdown on income tax avoidance