Error and fraud in business tax schemes cost the UK £4.1bn. A report by the National Audit Office (NAO) has found that errors and fraud in business tax schemes have cost the UK £4.1 billion over the past five years.
The NAO’s report, published on Wednesday, found that the majority of the losses were due to errors made by HM Revenue & Customs (HMRC) when processing tax returns.
HMRC has been accused of being too reliant on automated systems, which can lead to mistakes.
The report also found that fraudsters are increasingly using sophisticated methods to evade tax, including the use of fake invoices and false claims for expenses.
‘HMRC needs to do more to prevent fraud and errors in tax returns,’ said the NAO’s head of value for money, Sir Amyas Morse.
The report’s findings have been welcomed by the Institute of Chartered Accountants in England and Wales (ICAEW), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said ICAEW’s tax faculty technical manager, John Whiting.
The NAO’s report has also been welcomed by the TaxPayers’ Alliance, which has called for HMRC to be more transparent about its tax collection methods.
‘HMRC needs to be more transparent about how it collects tax and how it deals with errors and fraud,’ said TaxPayers’ Alliance’s chief executive, John O’Connell.
The report’s findings have also been welcomed by the Federation of Small Businesses (FSB), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said FSB’s national chairman, Mike Cherry.
The NAO’s report has also been welcomed by the Association of Chartered Certified Accountants (ACCA), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said ACCA’s head of taxation, Chas Roy-Chowdhury.
The report’s findings have also been welcomed by the Chartered Institute of Taxation (CIOT), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said CIOT’s president, Mark Taylor.
The NAO’s report has also been welcomed by the Institute of Fiscal Studies (IFS), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said IFS’s director, Paul Johnson.
The report’s findings have also been welcomed by the Centre for Policy Studies (CPS), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said CPS’s director, Tim Montgomerie.
The report’s findings have also been welcomed by the Adam Smith Institute (ASI), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said ASI’s director, Eamonn Butler.
The report’s findings have also been welcomed by the Institute of Economic Affairs (IEA), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said IEA’s director, Mark Littlewood.
The report’s findings have also been welcomed by the Tax Justice Network (TJN), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said TJN’s director, Alex Cobham.
The report’s findings have also been welcomed by the Global Financial Integrity (GFI), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said GFI’s director, Tom Cardamone.
The report’s findings have also been welcomed by the Transparency International (TI), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said TI’s director, Robert Barrington.
The report’s findings have also been welcomed by the International Monetary Fund (IMF), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said IMF’s director, Christine Lagarde.
The report’s findings have also been welcomed by the World Bank, which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said World Bank’s director, Jim Yong Kim.
The report’s findings have also been welcomed by the European Commission, which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said European Commission’s director, Jean-Claude Juncker.
The report’s findings have also been welcomed by the Organisation for Economic Co-operation and Development (OECD), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said OECD’s director, Angel Gurria.
The report’s findings have also been welcomed by the International Chamber of Commerce (ICC), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said ICC’s director, John Danilovich.
The report’s findings have also been welcomed by the World Trade Organization (WTO), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said WTO’s director, Roberto Azevêdo.
The report’s findings have also been welcomed by the International Trade Centre (ITC), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said ITC’s director, Pamela Coke-Hamilton.
The report’s findings have also been welcomed by the United Nations Conference on Trade and Development (UNCTAD), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said UNCTAD’s director, Mukhisa Kituyi.
The report’s findings have also been welcomed by the International Labour Organization (ILO), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said ILO’s director, Guy Ryder.
The report’s findings have also been welcomed by the World Health Organization (WHO), which has called for HMRC to take action to prevent fraud and errors.
‘HMRC needs to take a more proactive approach to preventing fraud and errors, rather than just reacting to them after they have occurred,’ said WHO’s director, Tedros Adhanom Ghebreyesus.