According to a group of MPs, HM Revenue & Customs are still not doing enough to tackle fraud.
Tax payers were missing out on £16bn a year as a result of evasion and criminal activity. The MPs explained that they believe HMRC should increase there number of investigations, however the HMRC believe they are one of the most effective tax collectors in the world.
The current tax gap is around £34bn a year and over half of this is down to fraud. However the HMRC explained that they collected 93 pence of every pound due which is one of the smallest gaps in the world. A spokesperson explained that they remain strategic in tracking down the few that try to get out of paying their fair share. HMRC have 26,000 staff who focus on fraud, avoidance and evasion alone. MPs continued to argue their point and explained that HMRC have not got a clear strategy and they should set one by November 2016.
The government have recently announced a series of measures to tackle the issue of offshore tax evasion. Millions of documents released revealed how the rich exploit tax havens to hide their wealth. HMRC have said to have told MPs that around 35 wealthy people are investigated for tax evasion each year and they are unaware of how many individuals are actually successfully prosecuted each year.
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