"All of the tax gap estimates shown are subject to error.The main sources of error are random errors due to sampling and systematic errors due to assumptions used to derive the estimates. Where possible the range within which the true estimates would be expected to lie has been estimated. However for some taxes and components it has not been possible to provide a robust estimate of the error margin."
That Inheritance tax avoidance and evasion is £0.1 billion when this tax is so widely known as an ‘honesty box’ tax – requiring for a start retrospective declaration of gifts made in the seven years prior to death – of which the executors may well be wholly unaware?
That tax avoidance of income tax, Capital Gains Tax, and national insurance combined is just £1.4 billion when George Osborne admitted that avoidance of CGT alone was more than £1 billion in his June budget speech? So there’s almost no income tax avoidance at all then?
That the 20 million or so people who do not receive tax returns each year – including every single person who trades in the shadow economy – between them evade just £0.3 billion in income tax – when the World Bank says that the UK shadow economy is 13.5% of GDP?
“The tax gap number is staggering and this government is committed to taking the necessary action to bring it down – taking steps to reduce tax avoidance and evasion, including by the richest people in our society, so that everyone pays their fair share and we reduce the tax gap over the coming years.”