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<p>Tax evasion is always illegal and HMRC’s aim is for everyone to pay the tax that
is legally due, no matter who they are. HMRC’s role is to make it easy to get tax
right for the compliant majority and make it hard for the dishonest minority to cheat
the system.</p><p>HMRC has achieved a long-term reduction in the UK’s tax gap from
7.5% in 2005-06 to 4.8% (£35.8 billion) in 2021-22 (the latest estimate). The tax
gap is composed of a range of customer behaviours: non-payment, use of avoidance schemes,
legal interpretation, error, failure to take reasonable care, evasion, the hidden
economy and criminal attacks on the tax system.</p><p> </p><p>Evasion is when people
or businesses deliberately do not declare or account for what they owe. It made up
0.6% or £4.7 billion of the £35.8 billion.</p><p> </p><p>HMRC works to prevent fraud,
tackle avoidance and evasion by designing policies and processes which minimise risk,
by promoting good compliance with the tax system through education initiatives and
responding with a range of interventions, capabilities and sanctions given to them
by Parliament, including the exercising of strong civil and criminal investigation
powers.</p><p> </p><p>Since 2010, the Government has introduced over 200 measures
to tackle tax avoidance and evasion, including 21 measures introduced since 2021 that
are forecast to raise over £7 billion. Of these measures, 4 measures were announced
at the Autumn Statement 2022 and are forecast to raise £5 billion in tax revenues
over the next five years.</p><p> </p><p>HMRC will continue to work hard, putting in
place measures which mean we can go even further in reducing the tax gap, and making
sure taxpayers and businesses meet their obligations and pay the tax they owe.</p><p>
</p><p>Published information: ‘Measuring tax gaps tables 2023’ (Table 7.1) at gov.uk.</p>
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