Tax Rebates & Refunds

Oxfam reveals UK economy loses £5.2bn a year to tax evasion

February 4, 2013
Posted in Income Tax — Written by Jennifer

New research published by the charitable organisation Oxfam has revealed that every year, the UK economy loses around £5.2 billion to tax evasion.

The Oxfam report showed that individuals and businesses who evade tax are depriving the UK of around £200 per household.

The charity believes that more needs to be done by the government and by HMRC, the department responsible for curbing tax evasion as well as processing income tax and tax rebates, to crack down on the evasion of tax.

According to Oxfam, the unpaid tax could be used by the government to rescue millions of people from poverty. In fact, the charity estimates that the money owed by wealthy tax evaders could be used to provide an extra £21 a week to every UK household that is struggling with poverty.

Oxfam’s director of UK poverty Chris Johnes said on tax return deadline day:

“As many people in the UK submit their tax returns today, billions of pounds owed to the Government are languishing in offshore bank accounts, leaving ordinary people to pick up the tab for support and services that we all rely on. It is sickening and immoral that tax evaders get off scot-free whilst thousands of the poorest families are being forced to go to charity food banks in order to provide a meal, or go without heating when it’s freezing outside.”

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