HMRC define the “tax gap” as the difference between the amount of tax that they should be collecting and the amount they actually collect. In percentage terms this has been falling in recent years with the gap at 8.5% in 2005/06 and at 6.8% for 2012/2013, equating to £34bn for 2012/2013. The tax gap is comprised of amounts estimated to not have been collected because of t…
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