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HMRC reveals £32bn tax left unpaid in 2010/11
by Jun Merrett on Oct 18, 2012 at 10:52
HM Revenue & Customs (HMRC) has estimated a £32 billion tax gap for 2010/2011, lower than the previous term due to its crackdown on tax evasion and avoidance.
Its estimate of the gap is 6.7% of tax due, down from 7.1% in 2009/2010.
'Our determination to support the honest majority and to crack down on evasion, avoidance and fraud have kept downward pressure on the tax gap,' she said. 'We are determined to do more and we are devoting increasing resources to pursuing those who do not pay the tax they owe, while making it easier for people and business to comply with their tax obligations.'
The HMRC works out the tax gap from 30 estimates from different taxes and is also broken down into reasons tax has not been collected including tax evasion and avoidance, criminal attacks and if a business has become insolvent.
David Gauke, the exchequer secretary said: 'These tax gap figures show that the vast majority of people and businesses pay the tax they owe on time. Last year £468.9 billion was collected, including £13.9 billion brought in through HMRC’s work policing the rules.
'Every pound of tax that is not collected puts a greater burden on honest taxpayers and public services, so the government and HMRC will continue to work together to make it harder for individuals and businesses not to pay the taxes that are due.
'We are determined to reduce the tax gap and have made £917 million available to help HMRC tackle avoidance and evasion.'
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