The National Fraud Authority (NFA) has published a report that reveals tax fraud is the highest individual public sector fraud loss area with an estimated £15bn lost each year.
While fraud losses are difficult to estimate, the latest NFA figures - which are up by almost a third compared to last year’s data - make for interesting reading.
The £15bn public sector tax fraud figure breaks down as follows:
- evasion - £7bn
- criminal attacks - £5bn
- hidden economy - £3bn
Tax evasion is by far the largest problem area at £7bn a year - a figure that overshadows the £1.5bn of benefit and tax credits fraud, which together are estimated at £1.5bn a year.