Concerns over tax avoidance & evasion and PIP 'grey areas'
Avoidance uses lawful methods to reduce tax, while evasion involves criminal acts like hiding income. Avoidance can be ethically grey; evasion is punishable.
HMRC may challenge aggressive avoidance, but evasion can lead to fines or prison. Different enforcement approaches are used.
The estimated UK tax gap for 2021-2022 was £36 billion, an increase from £32 billion in 2019-2020.
Tax avoidance and tax evasion together led to £12.4 billion in lost revenue in 2021-2022, with criminal tax evasion alone costing the UK £5.4 billion.
Andrew Nutt,
Bargoed
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