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Income Tax

As the right hon. Gentleman knows, when any Government deal with tax evasion, it is always difficult to be certain about the scale of the activity and the value of the funds that are being defrauded from the Exchequer, so it is difficult to make a precise estimate. I refer him to the regulatory impact assessment that we published on the EU savings directive two years ago, which set out our estimate of the full impact of the EU savings directive on the UK. Our best estimate was that in the first full year the revenue gained to the Treasury would be in the order of £60 million to £70 million.