The House of Commons public accounts committee has launched an inquiry on the 18 December 15 on ‘Tackling Tax Fraud, how HMRC responds to tax evasion: the hidden economy and criminal attacks inquiry’
The scope of this inquiry is to assess HMRC’s performance in tackling different types of tax fraud, its uses of prosecutions, and how it assess risk and uses it data, and towards shifting strategy to place more emphasis on measures to prevent tax losses rather than relying so much on investigating them afterwards.
The estimated size of the problem of tax fraud is £16 billion each year. HMRC needs to make inroads into reducing this, by making better uses of its resources such as data analytics, and manage it risk better to prevent losses rather than having to investigate the losses later, after the horse, so to speak, has bolted.
The committee also pointed out that customer service standards are low at HMRC, and this can make it difficult for people to pay taxes or the correct amount of taxes, and there is an unacceptable amount of unanswered telephone calls, and often a long wait if you do get your telephone call answered.
We will bring you any updates on this story in due course.