Partner Article

Does cutting HMRC’s budget make sense?

Last week’s Spending Review brought news that the Chancellor would cut HMRC’s budget by a 5%. Given the tough rhetoric on stamping out tax avoidance, is this this decision a foolhardy one?

It’s certainly a mixed message as Osborne proudly claimed in his Autumn Statement the department would not be subjected to reduced funds.

The Association of Chartered Certified Accountants’ head of taxation, Chas Roy-Chowdury, this week said: “If HMRC could make serious inroads in to narrowing the tax gap we would all be better off. We do not expect HMRC to have an unlimited budget but we would expect the Chancellor to realise that cutting their budget reduces their ability to collect taxes.

With the Google tax issue still looming surely the Chancellor can ill afford to ease off the gas here?

This was posted in Bdaily's Members' News section by Tom Keighley .