To ask Mr Chancellor of the Exchequer, what assessment he has made of which are the principal methods of tax evasion; and what proposals he has for tackling each such method.
HMRC's latest estimates of thetax gap, which covers the tax lost due to all forms of non-compliance, including evasion was published on 22 October 2015. The tax gap in the 2013 to 2014 financial year (the latest year) was estimated to be £34billion – 6.4% of the total tax that HMRC estimates was due. Tax evasion accounted for £4.4 billion of this. Tax evaders employ a wide range of methods, ranging from simply not recording taxable transactions to sophisticated sales suppression. HMRC continually reviews its approach to tackling different methods of evasion in the light of operational experience.
Since 2010 HMRC has delivered record compliance yield from tackling all forms of non-compliance, including evasion, avoidance and fraud.