This comment has just been published by the National Audit Office:
Government lacks a clear understanding of the scale of the fraud problem and departments vary in their ability to identify and address fraud risks. The data that does exist is patchy, inconsistent and of variable quality. The most comprehensive data relates to areas of known risk — tax credit and benefit fraud — but information across the rest of government is clearly incomplete. It is difficult to formulate solutions if the scale and nature of the problem is unknown.
Now I know this was about fraud, and not the tax gap, but candidly if they are this clueless within their own systems then the chance they really have got their tax gap estimate right - based on their own systems - is very low indeed.
It really is time HMRC were honest about this.
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“Private Eye” last week at the very had an article about the many firms etc. involved in confidential investigations, analysis and fraud seeking. I did not realise how big this sector was. What does occur to me if a firm is very good at identifying fraud etc. then it could be equally good at suggesting ways and means to avoid the law and taxes. These chaps, I suspect could outrun the HMRC by a country mile.
Putting aside the tax gap for a moment, think of what this means for the unbelievably cruel and comprehensive evisceration of social assistance and the coming reform of tax credits. The bogus fraud claim was at the heart of the case for slashing welfare.
I am sure like me this is no real surprise the scandal is that the NAO seem to have only just realised. HMRC will stay mute as usual they rarely answer any straight question. I have yet to have a plain committed reply to a question asked.
If, Ann, based on my recent experience, they even grace one with any sort of reply. Dealing with HMRC on a day to day basis routinely leaves me lacking the will to live.
Quite right Richard if HMRC can’t quantify something properly that is on “their doorstep of their own home” how on earth can they quantify something taking place in all the different houses of their neighbourhood”?
Surely they are delusional!