HC Deb 08 January 2004 vol 416 cc426-7W
Joan Ruddock

To ask the Chancellor of the Exchequer what measures have been put in place to reduce tax evasion since 1997; and what estimates have been made of additional sums collected as a result. [146328]

Dawn Primarolo

Activities designed to counter tax evasion are a normal and continuing part of the Inland Revenue's business. Important measures introduced since 1997 include the implementation of the—`Grabiner' recommendations; Proceeds of Crime Act; Savings Directive; Money Laundering provisions and Production Powers for use in criminal cases. Additionally, specifically funded compliance and enforcement packages have been put in place to tackle fraud and protect the Exchequer from non-payment of tax and other duties. In the 2003 Budget the Chancellor announced additional funding of £66 million over three years for such a package.

Typically, new measures to counter tax evasion are designed to work within the wider compliance regime and in concert with other measures. Consequently, often no meaningful estimates can be made of additional sums collected as a result of particular measures in isolation. Figures of total estimated additional liability flowing from the Inland Revenue's work tackling noncompliance are shown each year in their Annual Reports, copies of which are available in the House of Commons Library.