Tax gap - HMRC has issued its estimate of the tax gap
HMRC has issued its estimate of the tax gap – the difference between its estimate of what tax is due and what is actually collected. For 2010/11 it estimates the gap at £32 billion which is broken down over taxes and behaviour. HMRC believes that personal taxes and VAT account for almost £24 billion of the shortfall.
The behavioural breakdown is interesting though – HMRC’s estimates are:
|- Criminal attacks||5|
|- Hidden economy||5|
|- Legal interpretation||4|
|- Errors and mistakes||
Looking at the numbers and the press coverage, one would have expected the avoidance estimate to be higher. Maybe next year...
Date: 13th November, 2012
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