And the tax gap is‚Ķ.£25 billion, just as The Missing Billions said

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Deloittes, in a cynical and politically motivated exploitation of central government funding, recently took opportunity of their commission to work on the Foot Review of British tax havens to argue that my calculation of the Tax Gap in the TUC publication The Missing Billions was wrong.

I suggested a figure of £25 billion for direct taxation. They said (page 78) the figure was £2 billion and may be was much lower.

It is curious to note in that light the following table summarising HMRC’s calculation of the tax gap, published today:

Odd to note that the figure for the direct tax gap is‚Ķ£25 billion.

OK, there is £3.1 billion of evasion in there. I accept that was not in my calculation (and I’d add that it is wildly underestimated for reasons noted here) but also note that the corporation tax gap alone is way above that noted by Deloittes.

Which I think dismisses their work once and for all as exactly what it was – politically motivated misinformation. And this does also, I think, show The Missing Billions as being an accurate assessment – as I’ve always maintained.