ARC has urged MPs, ahead of the Estimates Day debate on HMRC in the House of Commons on Wednesday 2 March, to support increased investment in the department.
In advance of the debate, ARC has provided written briefing to a number of MPs who have an interest in tax or HMRC issues, urging them to support increased investment in HMRC.
Estimates Day debates are chosen by the Liaison Committee, which is made up of the chairs of each of the select committees, and tend to focus on select committee reports or ongoing inquiries.
ARC President Graham Black said: “We are asking MPs to support increased investment in HMRC. ARC proposes greater emphasis and investment in closing the tax gap as an alternative to public sector cuts or tax increases. Every developed economy has a tax gap. It is the difference between the amount of duty and tax due under the law and the amount taxpayers pay voluntarily. HMRC recently estimated the size of the UK Tax Gap as over £50bn, equivalent to an extra £1,000 of tax for every adult in the country.
“HMRC action managed to reduce the gap by about £12bn last year, but ARC believes that far more can be done to reduce the size of the tax gap and therefore reduce the budget deficit. It cannot be right that, at a time when every family in the UK is being asked to make significant personal sacrifices to reduce the deficit, tax cheats are depriving the Exchequer of more than £50bn each year.”