Let me ask you the more interesting question Frances
The BoE thinks there is a 10% shadow economy
HMRC say they lose at least 10% of VAT
How come in that case HMRC can say the maximum loss to evasion is £21 bn (of their gap about £9 bn is avoidance and £4 bn bad debt)?
Total tax yield exceeds £600 billion on 90% of the economy (about 35%)
How come the remaining 10% (£180 billion +) yields 11%
Would ypu like to explain that?
I’m not called Frances but this is easy enough to explain.
If you tax something you get less of it. No ifs, no buts, simple fact.
Some amount of those grey and black economies simply will not happen if people are taxed on those grey or black economies. Thus we can’t say that tax is being avoided if the thing would never happen if tax were applied.