A major programme to improve the way HMRC tackles tax evasion delivered £4.32bn of additional tax yield between 2006 and 2011, according to the National Audit Office, but HMRC ‘is not yet exploiting the full potential’ of new capabilities including the use of ICT systems to detect evasion.
The department plans to invest in work to tackle tax avoidance and evasion to bring in additional tax venues of £7bn a year by 2014/15 – from a baseline of £13bn in 2010/11 – by re-investing £917m of savings in tackling non-compliance.
The programme cost £387m in the period to 2011/12, and comprised more than 40 projects. ‘The yield was lower than forecast in 2010/11 owing to slippage in project delivery and some projects not delivering all of their expected benefits,’ the NAO added.
‘HMRC reduced staff numbers by the planned amount of 3,374 full time equivalents by the end of 2008/09, two years ahead of schedule. It also generated an improvement in productivity – defined as the level of yield generated by each full time equivalent – of approximately 36%, below its forecast of a 42% improvement.’
Mike Eland, HMRC’s Director General of Enforcement and Compliance, and Mike Shipp, Director, Programme of Assurance and Investment, are scheduled to appear before the Commons Public Accounts Committee next week to discuss the programme.
A major programme to improve the way HMRC tackles tax evasion delivered £4.32bn of additional tax yield between 2006 and 2011, according to the National Audit Office, but HMRC ‘is not yet exploiting the full potential’ of new capabilities including the use of ICT systems to detect evasion.
The department plans to invest in work to tackle tax avoidance and evasion to bring in additional tax venues of £7bn a year by 2014/15 – from a baseline of £13bn in 2010/11 – by re-investing £917m of savings in tackling non-compliance.
The programme cost £387m in the period to 2011/12, and comprised more than 40 projects. ‘The yield was lower than forecast in 2010/11 owing to slippage in project delivery and some projects not delivering all of their expected benefits,’ the NAO added.
‘HMRC reduced staff numbers by the planned amount of 3,374 full time equivalents by the end of 2008/09, two years ahead of schedule. It also generated an improvement in productivity – defined as the level of yield generated by each full time equivalent – of approximately 36%, below its forecast of a 42% improvement.’
Mike Eland, HMRC’s Director General of Enforcement and Compliance, and Mike Shipp, Director, Programme of Assurance and Investment, are scheduled to appear before the Commons Public Accounts Committee next week to discuss the programme.
