So, the tax gap.
The Government’s claim that £31billion of taxes go uncollected each year is based on a misleading algorithm created for the American tax system, it can be revealed.
Revenue & Customs is now working on major changes to the calculation which could see the figures altered radically – up or down.
But there is disquiet that the use of US software could be giving a very misleading picture as America and Britain have quite different tax systems.
In the US, almost everyone fills out their own tax return, in contrast to Britain’s PAYE system that taxes salaries before money is transferred to bank accounts.
Idiocy. You think they don’t have withholding in the US?