To ask Mr Chancellor of the Exchequer, how many inquiries were raised into the corporation tax returns of companies submitted in each (a) 2012-13, (b) 2013-14, (c) 2014-15, (d) 2015-16 and (e) 2016-17; how many of those resulted in additional tax being due in each year; what that sum of additional tax due was by tax year; and what part of that additional tax due was paid by in each tax year.
The data below represents the approximate number of inquiries opened into Corporation Tax by HMRC’s Customer Compliance Group:
2012-2013 - 9,477
2013-2014 - 7,134
2014-2015 - 13,408
2015-2016 - 14,346
2016-2017 - 14,507
The compliance yield solely from Corporation Tax inquiries closed in the following years is represented below:
2012-2013 - £4.5bn
2013-2014 - £5.2bn
2014-2015 - £3.9bn
2015-2016 - £3.1bn
2016-2017 - £4.0bn
This does not include the additional Corporation Tax resulting from the Product and Process component of HMRC’s compliance activity. Product and Process Yield is the estimated annual impact on net tax receipts of legislative changes to close tax loopholes and changes to our processes which reduce opportunities to avoid or evade tax.
These figures also exclude payments of £100m in 14-15 and £943m in 15-16 following Accelerated Payment Notices issued to the largest businesses.
Comparisons should not be made between the numbers of cases opened and the yield amount for the corresponding year. This is because it can take several months to work a case and inquiries opened in a specific year will not necessarily be closed, or settled, in the same year.
There are currently around 26,000 people working in HMRC’s Customer Compliance Group tackling all forms of non-compliance in the tax system– ranging from individuals operating in the hidden economy, through to detailed investigation of offshore structures and scrutinising the tax affairs of the largest multi-national companies. This resource gives HMRC the capability to effectively tackle compliance risks.
It is not possible to provide a breakdown of how many staff are employed on corporation tax inquiries.