NAO calls on HMRC to demonstrate tax avoidance crackdown
HM Revenue and Customs (HMRC) must demonstrate how it plans to tackle tax avoidance and reduce the number of cases it has open.That is according to the National Audit Office (NAO), which has published a report on the subject - one that says more than 100 new avoidance schemes are revealed every year under the Disclosure of tax avoidance scheme (DOTAS).
But the organisation warns that while HMRC has an anti-avoidance strategy in place, it must monitor its costs and judge how effective its plans are.
Amyas Morse, Head of the NAO, explained that more needs to be done to reduce the 41,000 tax avoidance cases currently being studied.
"HMRC must push harder to find an effective way to tackle the promoters and users of the most aggressive tax avoidance schemes," he explained.
"Though its disclosure regime has helped to change the market, it has had little impact on the persistent use of highly contrived schemes which deprives the public purse of billions of pounds."
It comes after Business Secretary Vince Cable said that changes to help reduce tax avoidance could follow in next month's Autumn Statement.
Posted by Thomas Fletcher
Last updated: 22nd November 2012