Originally Posted by Osem

This is why we need a simpler tax system. Easier to follow, easier to police and easier to enforce with any 'acceptable'* forms of avoidance (as opposed to evasion which is already illegal) and reliefs unequivocally defined.

There's also the question of which (benefit fraud or tax evasion/avoidance) is easier to control/enforce. Unpalatable as it is, rich people and companies can currently construct and complicate their activities to take full advantage of any loopholes and it's incredibly time consuming and expensive to unravel them. This means that any savings made in recovered tax have to be offset against the costs and there's always the possibility that HMRC will lose in court and the taxpayer have to foot the bill.

A simpler benefits system would help reduce fraud and confirm/deny entitlement and that's what's currently being worked upon isn't it?

* e.g. ISA's & pension tax relief designed to encourage saving.