Parliamentary Search

Written question asked by Lord Bradshaw (Liberal Democrat) on Wednesday, 10 January 2024, in the House of Lords. It was due for an answer on Wednesday, 24 January 2024. It was answered by Baroness Vere of Norbiton (Conservative) on Wednesday, 17 January 2024 on behalf of the Treasury.

Revenue and Customs: Prosecutions

Question

To ask His Majesty's Government, further to the Written Answer by Baroness Vere of Norbiton on 20 December 2023 (HL1133), whether the prosecutions referred to are for income tax or VAT offences, and what assessment they have made of the sufficiency of the resources targeting these offences.

Answer

The prosecutions and convictions referenced in the answer I gave on 20 December 2023 to PQ HL1133 relate to all HMRC compliance related offences irrespective of tax head.

HMRC’s aim is for everyone to pay the tax that is legally due, no matter who they are. It has achieved a long-term reduction in the UK’s tax gap from 7.5% in 2005-06 to 4.8% in 2021-22.

HMRC tailors compliance activity, including allocation of resources, depending on the level of risk in each tax head, but also on customer behaviours and capability. This allows the Department to identify compliance risks and customer needs, and adapt its approach where necessary – to offer more support to help people get their tax right, or to take targeted action against avoidance, evasion and criminal attacks.

The most effective way it can ensure the right tax is paid is through the overall design of the tax system – improving processes to remove opportunities for error and fraud, and taking preventative action to educate and help customers get their taxes right first time.

Criminal investigation, with a view to prosecution, is an important part of HMRC’s overall compliance strategy. HMRC will conduct criminal investigations and seek criminal prosecutions where the behaviour displayed is such that only a criminal sanction is appropriate, or where a criminal prosecution will act as a strong deterrent.

The rules are the same for everyone, but tailoring the approach helps HMRC to respond in the most targeted, proportionate and effective way.

The resource available for HMRC and its compliance work is agreed with ministers at Spending Reviews and Fiscal Events. The agreed level is shaped by economic factors and enables HMRC to carry out the compliance activity required to maintain a stable tax gap over the medium term.

Secondary information

Type
Written question
Reference
HL1397
Session
2023-24
Related items
Revenue and Customs: Prosecutions
Wednesday, 20 December 2023
Written questions
House of Lords
Subjects
Income tax Prosecutions VAT Revenue and Customs
Link
View this Written question on www.parliament.uk