FINANCE BILL: Report into the UK Tax Gap
‘(1) The Chancellor of the Exchequer shall, within one year of the passing of this Act, prepare and publish a report, in consultation with stakeholders, on the UK Tax Gap.
(2) The report must include the following—
(a) details of the UK Tax Gap (including individual breakdowns for figures relating to tax avoidance and tax evasion) for the financial years—
(i) 2015-16;
(ii) 2014-15;
(iii) 2013-14;
(iv) 2012-13; and
(v) 2011-12;
(b) a detailed summary of the model used by HMRC for estimating the UK Tax Gap;
(c) an assessment of the efficacy of HMRC’s performance in relation dealing with the UK Tax Gap, including—
(i) a breakdown of specific HMRC departments or units dealing with investigation and enforcement matters in relation to the UK Tax Gap;
(ii) details of the numbers of staff in each of the years listed in paragraph (a) who are located within departments or units dealing with investigation and enforcement matters in relation to the UK Tax Gap;
(iii) details of the budgets allocated to departments or units dealing with investigation above; and
(iv) details of the numbers of prosecutions or the amount of tax recovered in each financial year listed in paragraph (a) as a result of the work of HMRC departments or units dealing with investigation and enforcement matters in relation to the UK Tax Gap in those financial years.
(d) a review of the impact on tax revenues of requiring non-public organisations involved in public procurement processes to—
(i) be registered in the UK for tax purposes;
(ii) have paid UK tax for a period of at least five years prior to the date the relevant contract is awarded;
(iii) publish full details of beneficial ownership for the period of five years prior to the date the relevant contract is awarded; and
(iv) provide company accounts (including those of any beneficial owners) for the period of five years prior to the date the relevant contract is awarded.
(e) a comprehensive assessment of the efficacy of the General Anti Abuse Rule in discouraging tax avoidance;
(f) an assessment of the impact on tax revenues of introducing a set of minimum standards in relation to tax transparency for all British crown dependencies and overseas territories including (but not limited to)—
(i) placing a statutory duty on British crown dependencies and overseas territories to observe a system of good governance and practice in relation to tax enforcement; and
(ii) requiring British crown dependencies and overseas territories to maintain a public register of owners, directors, major shareholders and beneficial owners;
(g) an assessment of the impact on tax revenues of establishing a public register of all trusts located within the UK, British Crown Dependencies and overseas territories, including but not limited to—
(i) details of the names of beneficiaries to such trusts;
(ii) details of the addresses of beneficiaries to such trusts;
(iii) details of assets held by such trusts;
(iv) details of any trustees registered within the UK who have transferred that main residence to non-UK jurisdictions;
(v) details of tax avoidance schemes involving trusts which are currently disclosed to the HMRC.
(3) For the purposes of this section, the “UK Tax Gap” means the difference in any financial year between the amount of tax HMRC should be entitled to collect and the tax actually collected in that financial year which derives from tax avoidance and tax evasion.’—(Rebecca Long Bailey.)