Government Response
The level of evasion depends on a number of factors, including fiscal equation. Efforts to evade income tax decline when the amounts involved are lower. The level of evasion also depends on the efficiency of the tax administration. Corruption by tax officials make it difficult to control evasion. Tax administrations use various means to reduce evasion and increase the level of enforcement: for example, privatization of tax enforcement, tax farming, and Pre-Shipment Inspection (PSI) agencies. In 2011, HMRC stated that it would continue to crack down on tax evasion, with the goal of collecting £18 billion in revenue before 2015. In 2010, HMRC began a voluntary amnesty programme that targeted middle-class professionals and raised £500 million.
Read more about this topic: Tax Evasion
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