Prosecutions of professionals facilitating tax evasion have dropped over 75% in the past five years, with fewer than five cases in 2023-24. The previous peak was 16 in 2018-19. This decline reflects broader enforcement challenges facing HMRC, exacerbated by Brexit and the COVID-19 pandemic. Critics, including Lord Prem Sikka, have criticized the agency's transparency and reliability, especially after revealing misreported data. As HMRC struggles to recover billions in lost tax revenue, the decline in action against enablers like tax planners undermines trust in the UK tax system, prompting calls for accountability.
The drop in prosecutions is alarming, revealing a lack of commitment by HMRC to tackle tax evasion enablers, undermining the perceived integrity of the UK tax system.
HMRC's reported decline in prosecutions raises serious questions about its transparency and reliability, as fewer cases against tax evasion enablers threaten the foundation of our tax community.
Lack of action against professionals involved in tax evasion reflects poorly on HMRC's enforcement capabilities, exacerbated by operational struggles following Brexit and the pandemic.
Lord Prem Sikka's comments underscore the seriousness of HMRC's misreported prosecution figures, calling it "contempt of parliament" and highlighting long-standing concerns about HMRC's data reliability.
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