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.
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
Laurence Field, the head of tax at national audit, tax and advisory firm Crowe Clark Whitehill outlines the 6 'unexpected items' regarding HMRC's Making Tax Digital plans