According to HMRC's own estimates, £34.5 billion was not collected in 2012-13. The reasons HMRC gave were as follows: Tax evasion, tax avoidance, hidden economy, legal interpretation, non-payment, failure to take reasonable care, criminal activity, and errors (FT BIG READ, HMRC, Aug 21, pp6).
The FT article goes on to say that there was a widespread perception that HMRC is soft on the super rich and multinational companies. It gives as example the disclosure of thousands of account holders whose offshore assets were exposed in a February leak from HSBC's Swiss Unit to HMRC where only one was convicted. The article also refers to the most secretive tax havens - including British Virgin Islands, the Cayman Islands and Jersey, territories in which the Queen is head of state.
Between 2011 and 2015, admin staff levels were reduced from 66,000 to 56,000. This was contrasted with the fact that revenue collected per each £ of admin cost went up from £135,000 in 2010-11 to £165,000 in 2014-15. But so what?
My own experience as a government, industry and professional accountant for over 50 years and still practicing on a semi-retired basis is that it is not just a perception: it is a fact that HMRC is soft on multinational companies, large businesses and high net worth individuals. My recent success with a barrister's help in a tax tribunal case is further evidence.
If one year's tax gap was £34.5 billion, 52 years' was £34.5 multiplied by 52. Surely actions speak louder than words is my message to HMRC and FT.
Nagindas Khajuria
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