Setting better targets for HMRC

Article by Richard Cory, Professional Support Lawyer at Clifford Chance LLP. This article appeared in the November 2005 issue of Tax Adviser.
Government ministers and senior HMRC officials have, over the last two years or so, peppered their public statements with references to the 'tax gap' - particularly when those statements are being made in the context of introducing new anti-avoidance measures. Evidently it is believed not only that the 'tax gap' exists, but also that it is capable of being measured and that in some cases it is increasing. This article looks at the definition of 'tax gap'; why it is important to HMRC; whether it can be accurately measured and what better, alternative targets could be devised.

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November 2005 by Richard Cory