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HMRC 'loses its nerve' over big firm tax-avoiders

Tax authorities have been holding back on using sanctions against multinational companies, while pursuing small businesses and individuals, according to a new parliamentary report.

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Tax authority 'fails to collect £35bn' from big businesses

The "tax gap" between the amount owed to the Exchequer and the amount actually collected grew by £1 billion to £35 billion in 2011/12, according to a new parliamentary report that accuses HM Revenue and Customs of being soft on big multinational firms.

HMRC holds back from using the full range of sanctions at its disposal. It pursues tax owed by the smaller businesses but seems to lose its nerve when it comes to mounting prosecutions against multinational corporations.

It predicted that it would collect £3.12 billion unpaid tax from UK holders of Swiss bank accounts... but in 2013-14 it has so far secured just £440 million.

We were astonished that HMRC could not give any reasons for such a shortfall.

– Margaret Hodge, Chair of the Commons Public Accounts Committee

Read: Tax authorities 'hold back' on big firms, report finds

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HMRC 'loses its nerve' over big firm tax-avoiders

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