A pledged crackdown on tax evaders who fail to pay tens of millions to the Treasury has been a failure, a North East Labour MP says.
Blyth Valley’s Ronnie Campbell’s comments come after tax expert Richard Murphy estimated around £80m was not paid to the Government last year.
The MP also called on the Conservatives to reverse job cuts at HM Revenue and Customs (HRMC) which he says have shrunken the workforce by 43% in just over a decade.
He said: “The current Tory-led coalition has promised a clamp-down, but have not acted on those empty promises.
“Think how many new hospitals, schools and care homes could have been built across the North East.
“It is a disgrace and the next Labour government will sort it out.”
The report, commissioned by the Public and Commercial Services union, revealed the overall amount of tax owed, evaded or avoided has barely reduced despite tough-talking pledges by the Government. It adds evasion could rise to £100bn by 2018-19.
The report focused on economic activities not recorded or declared so as to avoid government regulation or taxation; tax lost as a result of other criminal or fraudulent activity in the UK economy; capital gains tax and inheritance tax and offshore tax evasion; and tax evasion on investment and rental income.
The report recommends introducing a proper anti-avoidance rule into UK tax law; country-by-country reporting for multinational corporations; reform of small business taxation; and proper regulation of companies in the UK to ensure they file their accounts and tax returns and pay the taxes they owe.
Source – Newcastle Evening Chronicle, 30 Sept 2014