CIOT respond to Treasury Sub-Committee tax avoidance and tax evasion inquiry
Released 12 June 2018
The Chartered Institute of Taxation (CIOT) has published its response to the Treasury Sub-Committee inquiry on tax avoidance and tax evasion.
The Treasury Sub-Committee invited the submission of evidence to inform its examination of what progress has been made in reducing the amount of tax lost to avoidance and offshore evasion and whether HMRC has the resources, skills and powers needed to bring about a real change in the behaviour of tax dodgers and those who profit by helping them. The CIOT comments that whilst the UK tax gap attributable to tax avoidance has reduced significantly in recent years, the element attributable to illegal behaviour has remained broadly constant. This reduction is due to changing factors, including public opinion, anti-avoidance/abuse legislation, HMRC’s compliance activity, and the approach of most tax advisers. The CIOT is concerned about the trend toward increasingly severe treatment of offshore ‘non-compliance’ even in the absence of deliberate intent and considers the enforcement approach should be geared towards whether the behaviour is deliberate, careless or merely confused. The CIOT considers that HMRC needs more resources to tackle onshore illegal activity which is persistent in the tax gap figures.
View the submission Treasury Sub-Committee Tax Avoidance and Tax Evasion Inquiry - CIOT response.