Tax Evasion
The question
To ask the Chancellor of the Exchequer, how much revenue HMRC estimates has been lost due to tax evasion facilitated through overseas territories in the last five years.
Answered by James Murray
HM Revenue and Customs (HMRC) estimates the size of the tax gap, which is the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid. The tax gap statistics are published annually and are available at: Measuring tax gaps 2024 edition: tax gap estimates for 2022 to 2023 - GOV.UK (www.gov.uk).
Table 7.1 of the online tables shows the illustrative tax gap time series by behaviour, including evasion. The tax gap for evasion was £5.5 billion in tax year 2022 to 2023. The online tables are available at: Measuring tax gaps tables - GOV.UK (www.gov.uk).
HMRC does not separately estimate the tax gap due to tax evasion facilitated through overseas territories.
HMRC uses a wide range of civil powers to tackle evasion whilst it carries out criminal investigations for the most serious cases where it is appropriate to do so.
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