The data obtained by Labour from the Office for Budget Responsibility (OBR) under Freedom of Information laws are the latest HMRC forecasts passed on to the OBR in order to assess the effectiveness of the Government’s tax avoidance measures.
The findings reveal a £2.1 billion (or 25%) shortfall in what these 28 measures would collect compared to what was first claimed by the government at fiscal events since 2010.
In one measure alone, £649 million (or 65%) went uncollected in offshore evasion.
Labour claim this new information reveals the Government’s weak record on clamping down on tax avoidance and evasion over this period.
Last month the Shadow Chancellor raised the issue of global tax avoidance and evasion in his speech at the World Economic Forum in Davos and called for greater international action.
He proposed an international Hippocratic oath from accountancy firms and big multinationals that they would not engage in or facilitate tax avoidance and evasion practices.
John McDonnell MP, Labour’s Shadow Chancellor, said: “These figures expose the utter failure of this Tory Government over the last 7 years to ensure that the super-rich and big corporations are paying their fair share in tax.
“This could be just the tip of the iceberg. After the Paradise Papers revelations last year, we know the government are quick to press release action, but slow to deliver on it – but now they have been shown to not even deliver on what they originally promised.
“It further reveals that the Tories are dragging their feet on this issue – they like to talk the talk on tax avoidance, but they never truly walk the walk.
“They never go far enough, and their failed action on this issue discloses that deep down tax avoidance for them is an acceptable practice for the super-rich and big business whose interests they serve.
“The Chancellor is still planning to continue with his party’s record of failure on tax avoidance, while at the same time pursuing his austerity agenda and handing out billions in tax giveaways to the same wealthy elite that fund their party.”
He continued: “We need an urgent change of direction from Philip Hammond.
“It’s not acceptable any longer for our public services like the NHS to go on being underfunded, while the Tories refuse to take serious action to properly clamp down on tax avoidance and evasion.
“The next Labour government will implement thorough measures to crack down on tax dodging by the super-rich and big corporations under our Tax Transparency and Enforcement Programme.”