MP Margaret Hodge and her Commons public accounts committee signed off for the Christmas break with a new report taking HMRC to task for its inability to close the £35bn+ tax gap.
“HMRC holds back from using the full range of sanctions at its disposal. It pursues tax owed by the smaller businesses but seems to lose its nerve when it comes to mounting prosecutions against multinational corporationsm” said Hodge in the committee’s report on the HMRC accounts for 2012-3.
When they were published in July, HMRC’s accounts were qualified due to around £2bn in fraudulent claims and tax credit errors. The comptroller and auditor general also made several critical comments about the roll-out of the PAYE real time information scheme and the size of the tax gap. These criticisms prompted the PAC to hold hearings with HMRC officials in October - and the opportunity to pick up a few more headlines by raking over the ashes in its final report...
About John Stokdyk
John Stokdyk is the global editor of AccountingWEB UK and AccountingWEB.com.