Source · Select Committees · Public Accounts Committee
Twentieth Report - Tackling the tax gap
Public Accounts Committee
HC 650
Published 16 October 2020
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Twentieth report from Session 2019-21 · published 4 Feb 2021
Recommendations & Conclusions
2
Recommendation
Not Addressed
HMRC does not know the relative size of tax gaps in the four nations of...
Recommendation
HMRC does not know the relative size of tax gaps in the four nations of the UK or across different industries. HMRC already publishes breakdowns of the tax gap by taxpayer group, tax type and behaviour. However, HMRC does not …
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Government Response Summary
The government's response discusses funding decisions for the Towns Fund and Levelling Up Fund, providing no comment on HMRC's ability to estimate tax gaps in the four UK nations.
HM Treasury
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4
Recommendation
Not Addressed
Although HMRC has yet to see the full effects of COVID-19 on taxpayer compliance, it...
Recommendation
Although HMRC has yet to see the full effects of COVID-19 on taxpayer compliance, it is already estimating up to £3.5 billion of fraud and error in furlough payments and has seen a significant drop in compliance yield in the …
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Government Response Summary
The government's response is irrelevant to the recommendation, discussing an annual update and monitoring of 'the Fund' rather than explaining how HMRC will change its compliance approach in light of COVID-19.
HM Treasury
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1
Conclusion
Not Addressed
On the basis of a Report by the Comptroller and Auditor General, we took evidence...
Conclusion
On the basis of a Report by the Comptroller and Auditor General, we took evidence from HM Revenue & Customs (the Department) and HM Treasury on tackling the tax gap.2
Government Response Summary
The government's response provides an introductory overview of HMRC's tax system responsibilities and the tax gap, rather than addressing the committee's factual statement about taking evidence.
HM Treasury
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14
Conclusion
HMRC explained to us that its overall approach to ensuring taxpayers’ compliance with the tax...
Conclusion
HMRC explained to us that its overall approach to ensuring taxpayers’ compliance with the tax laws is predicated on promoting voluntary compliance through promoting trust in the tax system and supporting taxpayers that want to comply. It aims to deter …
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HM Treasury
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17
Conclusion
Not Addressed
We also received written evidence from the Chartered Institute of Taxation, which highlighted the findings...
Conclusion
We also received written evidence from the Chartered Institute of Taxation, which highlighted the findings of a survey of businesses and agents with an interest in the programme that they had carried out jointly with the Association of Taxation Technicians …
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Government Response Summary
The government's response, which states agreement with a recommendation and details its actions on MTD costs, does not directly address the committee's conclusion that survey findings indicated Making Tax Digital compliance costs had far exceeded government estimates.
HM Treasury
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