Revealed: taxman is £22bn out of pocket

Source : The Independent page 1 - 21.7.09.
21 Jul 2009

Tax receipts have plunged by £22bn in 12 months, dramatically increasing the likelihood of large-scale tax rises and spending cuts. The crisis in business and industry, on the high street and in the property market contributed to a dramatic slump in the money collected by the Treasury.

Tax revenues dropped by £21.7bn, a fall of almost 5 per cent, figures from HM Revenue and Customs (HMRC) showed. An extra £3.3bn is likely to be written off in lost taxes and HMRC is fighting legal action over a further £7bn of disputed taxes. The public spending watchdog, the National Audit Office, said the downturn could have cost the Exchequer up to £32bn last year. HMRC had to be more "efficient" during the downturn.



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