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National Audit Office report: Confirmed impacts: Increasing the effectiveness of tax collection

Confirmed impacts: Increasing the effectiveness of tax collection

This impacts case study shows that HM Revenue & Customs has implemented more than 80% of our 130 recommendations since 2010, leading to significant reduction in tax avoidance and improvements in accountability and governance regarding tax disputes. It is one example of financial or non-financial benefits realised in 2014 as a result of our involvement, all of which are set out in our interactive PDF.

Impacts case study

In 2015, we published a report examining how HMRC responded to recommendations from the NAO and the Committee of Public Accounts in areas our work has focused on since 2010.

What are impacts?

HMRC responded positively to our recommendations and made changes in significant areas of tax administration. We made more than 130 recommendations to HMRC and it has implemented more than 80% of them. Following our report on marketed tax avoidance, HMRC obtained new powers to change the economics of tax avoidance by increasing the risks and reducing the advantages of using or promoting avoidance schemes. It also set up a new counter-avoidance directorate to coordinate its activities better. HMRC estimates that its new measures to tackle anti-avoidance will increase tax revenue by £400 million in 2014-15 and more than £1,600 million in 2015-16.

HMRC improved the transparency and accountability around how it settles large tax disputes in response to our recommendations. It appointed a new tax assurance commissioner who publishes an annual report describing its progress in resolving major disputes. Its new governance arrangements provide more independent challenge with greater separation between those working a dispute and those responsible for approving how it is be resolved.

 

 

Publication details:

Published date: October 14, 2015