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What's the tax gap?

21 August 2012 / Richard Murphy
Issue: 4367 / Categories: Comment & Analysis
HMRC’s version is refuted by RICHARD MURPHY, who claims his own estimate is nearer the truth

KEY POINTS

  • Tax gap comprises evasion avoidance and unpaid tax.
  • Measuring avoidance data.
  • Too few SMEs submit tax returns.
  • Cutting tax staff does not help.

In his article Mind the gap HMRC deputy director Ed Hagger seemed to have just one objective in mind which was to suggest that my estimates of the UK’s tax gap are wrong.

It is not the first time this year HMRC have dedicated so much time and effort to this task.

They also did so in a four-page submission to the House of Commons Treasury Select Committee in May this year. As such I am grateful to Taxation for giving me the opportunity to reply.

The reason for HMRC’s interest in my work is not hard to fathom. As documented on...

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