Public Accounts Committee (PAC) chair Margaret Hodge said it is “shocking” that HMRC has no systematic evaluation or monitoring of whether tax reliefs are working as intended.
Earlier this week members of the PAC took evidence from the Treasury’s Sir Nicholas MacPherson and HMRC chief executive Lin Homer on tax reliefs and how they are administered.
The Labour MP said: “the committee is all too aware of numerous instances where tax reliefs are exploited to avoid tax and not used to achieve the policy intent.”
Opening the hearing, Hodge asked how many tax expenditures there were, to which Homer said the OTS had looked at 159.
“There are 1,100 aren’t there?” Hodge replied. “I’m trying to use HMRC’s definition…why do you call them tax expenditure, why is it purist to do so?” she continued. “It isn’t a completely international definition.”
A recent NAO report identified...