Source · Select Committees · Public Accounts Committee
Forty-Ninth Report - Managing tax compliance following the pandemic
Public Accounts Committee
HC 739
Published 3 May 2023
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Forty-ninth report from Session 2022-23 · published 21 Jul 2023
Recommendations & Conclusions
3
Conclusion
Not Addressed
Set clear targets for compliance yield shortfall and rolling percentage of tax revenues.
Conclusion
Compliance yield fell during the pandemic, and HMRC does not know what level it should be targeting with its current resources. In the five years before the pandemic, HMRC collected on average around 5.2% of tax revenues through its compliance …
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Government Response Summary
The government response provided only states a different PAC conclusion (number 4) and does not contain a response to Recommendation 3 regarding compliance yield targets.
HM Treasury
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6
Conclusion
Not Addressed
Specify a contingency plan for increasing compliance capacity to tackle growing non-compliance risks.
Conclusion
There are signs that the tax gap may grow, and that HMRC does not have the operational resilience needed to deal with this. HMRC is funded to stop the tax gap from growing. The tax gap is an important measure …
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Government Response Summary
The government response provided addresses a recommendation to the Cabinet Office regarding contingency plans for the Shared Services Strategy, which is entirely unrelated to the committee's recommendation concerning HMRC's operational resilience and tax gap capacity.
HM Treasury
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1
Conclusion
Not Addressed
Committee examined challenges for HMRC in tackling post-pandemic tax non-compliance.
Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence from HM Revenue & Customs (HMRC) regarding the challenges to tackle non-compliance during and following on from the pandemic.1
Government Response Summary
The government acknowledges that the Committee took evidence from HM Revenue and Customs based on a report by the National Audit Office.
HM Treasury
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