Great Britain: Parliament: House of Commons: Committee of Public Accounts
Published: 2004-01-13
Total Pages: 34
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The Inland Revenue faces various risks of fraud in its activities to collect direct taxes and national insurance contributions, and to distribute tax credits to claimants on low incomes. Following on from a National Audit Office report (HCP 429 2002-03, ISBN 010292077X), the Committee's report examines the Department's progress in its risk assessment of non-compliance, strategies being developed to counter it, measures taken to tackle tax fraud and fraud in tax credits, and their use of sanctions and publicity to deter fraud. Findings include that the Inland Revenue needs to focus work on making a reasonable estimate of the gap between full and actual compliance with tax rules, and to set a date for publication of their revised compliance strategy. They should also increase the number of fraud investigations and prosecutions undertaken, and seek to raise public awareness about the risk of detection and punishment for those who commit fraud.