Michael O’Connor says:
July 3 2018 at 10:43 am
Richard, just wonder about you saying that HMRC doesn’t do anything to estimate the ‘policy gap’ which you correctly describe as resulting from “tax laws granting exemptions, tax liability deferrals or preferential tax rates”. HMRC does publish such estimates for VAT as well as other taxes in its annual ‘Estimated Costs of principal tax reliefs’ publication. For VAT, this came to near £50bn in 2016/17, with the two major components being the cost of zero-rating for Food and for New Dwellings.
Richard Murphy says:
July 3 2018 at 11:23 am
How reliable are these numbers?
Why are they not published as part of the tax gap?
Because they’re not part of the tax gap?