Tulip Siddiq – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Tulip Siddiq on 2016-05-03.

To ask Mr Chancellor of the Exchequer, with reference to paragraph H.21 of the HM Revenue and Customs (HMRC) document, Measuring tax gaps 2015 edition: methodological annex, published in October 2015, how much of the large business tax gap in each year since 2009-10 is accounted for by (a) the uplift factor for unidentified risks, (b) unsuccessful litigation by HMRC and (c) HMRC settling for a tax receipt at a lower rate than the tax under consideration that was identified.

Mr David Gauke

HM Revenue and Customs (HMRC) published its latest tax gap estimates on 22 October 2015 in Measuring tax gaps 2015 edition, which can be found at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/470540/HMRC-measuring-tax-gaps-2015-1.pdf

The uplift factor for unidentified risks is set out in Table 7.1, page 62.

HMRC’s method for calculating the Large Business Tax Gap is set out on page 65. All compliance work including litigation is reflected in the estimate of compliance yield shown in Table 7.1. Footnote 6 sets out why this differs from reported compliance yield. The information requested is therefore not available.

HMRC collects the tax due under the law in accordance with the published Litigation and Settlement Strategy.