Cable Forum - View Single Post - Which costs more? Tax evasion or Benefit Fraud?

Stuart · 04-02-2013, 16:17

The answer might surprise you.. http://www.guardian.co.uk/commentisf...-tax-avoidance

Now, I know the source is a left-wing newspaper, but it does make some interesting points.

Successive governments (from ALL parties) have been telling us that millions of people are abusing their benefits, and making loud noises about reducing that fraud while seemingly ignoring the evasion (both legal and illegal) that happens at the other end of the scale.

According to the DWP's official estimates, welfare fraud is currently around £1.2billion a year. Compare this to the fact that even the most conservative estimate places tax evasion at about £5bn a year. Also consider the fact that HMRC estimates that the gap between what it is paid and what it thinks it is owed is £30bn.

Personally, I think the Government needs to take a long, hard look at both the Welfare system and the Tax system. They are both bloated and overcomplicated. Something which leaves them both open to abuse.

Unfortunately, I doubt it will ever happen. To many MPs appear to be taking advantage of the loopholes to reduce their own tax bills.

04-02-2013, 16:17	#1
Stuart - Join Date: Jun 2003 Location: Somewhere Services: Virgin for TV and Internet, BT for phone Posts: 26,546	Which costs more? Tax evasion or Benefit Fraud? The answer might surprise you.. http://www.guardian.co.uk/commentisf...-tax-avoidance Now, I know the source is a left-wing newspaper, but it does make some interesting points. Successive governments (from ALL parties) have been telling us that millions of people are abusing their benefits, and making loud noises about reducing that fraud while seemingly ignoring the evasion (both legal and illegal) that happens at the other end of the scale. According to the DWP's official estimates, welfare fraud is currently around £1.2billion a year. Compare this to the fact that even the most conservative estimate places tax evasion at about £5bn a year. Also consider the fact that HMRC estimates that the gap between what it is paid and what it thinks it is owed is £30bn. Personally, I think the Government needs to take a long, hard look at both the Welfare system and the Tax system. They are both bloated and overcomplicated. Something which leaves them both open to abuse. Unfortunately, I doubt it will ever happen. To many MPs appear to be taking advantage of the loopholes to reduce their own tax bills.