From the Guardian, this morning:
Working for the Public and Commercial services Union and using HM Revenue & Customs data, I estimated tax evasion in the UK to be at least £70bn a year in March 2010. Recent World Bank data on the size of the UK shadow economy suggests a slightly higher figure. In the year to March 2010 HM Revenue & Customs cut more than one in eight of its frontline staff who might tackle this issue.
Beating tax evasion and the £25bn a year UK tax avoidance industry is the best way to rebalance the government's books. So why is no one in this government willing to embrace this issue and devote the resources to it that would create new jobs, enhance the quality of law and order in this country, uphold democracy and in the long run result in tax cuts for all honest people while maintaining essential public services we all rely on?
Richard Murphy
Director, Tax Research
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I guess the simple (if cynical) answer is that the Tories (and in fact all three major parties to an extent) like to put the boot into benefit fraudsters – they’re an easy target. Even though only 20% of Cameron’s £5bn figure for “fraud” was actually fraud according to HMRC! The rest was overpayments and mistakes by the benefit and tax credit agencies.
Whereas tax avoiders are the Conservatives’ natural constituency. They’ve been put there to promote the interests of a tiny group of very rich and powerful people – and that’s just what they’re going to do.
At least until the next election when we kick them out and replace them with a Labour (or progressive coalition) government that actually wants to take serious action to tackle avoidance… we can but hope. 😎