Margaret Hodge: HMRC is 'behind the times'
Margaret Hodge, the chair of the Public Affairs Committee has said the HMRC are "behind the times" when it comes to tax avoidance schemes.
Speaking to Daybreak she said it was a "cat and mouse game", with those who exploit legal loopholes, always one step ahead.
HMRC needs 'more robust' approach to tax avoidance
Chair of the Public Accounts Committee, Margaret Hodge has accused the Government consultation of tax avoidance schemes last year of not going far enough.
Read: Tax avoidance promoters face crackdown
– Margaret Hodge, Chair of The Public Accounts Committee
We have seen how public anger and consumer pressure can influence large companies, such as Starbucks, to behave more responsibly.
HMRC should publicly name and shame those who sell or use tax avoidance schemes in order to discourage such activity.
With at least £5 billion lost to tax avoidance each year, HMRC has got to get much more robust in its approach.
Tax avoidance promoters 'running rings around HMRC'
The Public Accounts Committee has warned that the HMRC must start publicly listing promoters and those who use their schemes, to avoid tax evasion.
Margaret Hodge, who chairs PAC, said: "Promoters of 'boutique' tax avoidance schemes like the one brought to our attention by the case of Jimmy Carr, are running rings around HMRC.
She added that schemes which exploit loopholes within the system are being taken advantage of.
"It has allowed a system to evolve where the dice are loaded in favour of the promoters of tax avoidance schemes," she said.
Calls for public list to 'name and shame' tax dodgers
Tax dodgers should be "named and shamed", a spending watchdog has warned, to discourage the rich and famous from exploiting legal loopholes to avoid paying billions to the Treasury.
The Public Accounts Committee said that clients and promoters are deliberately taking advantage of the time it takes HMRC to shut down a particular avoidance method to make their money.
It called for a public list of of promoters who use their schemes.
Last year comedian Jimmy Carr apologised after it emerged he used a complex scheme to reduce his tax bill.
Read: Carr apologises for tax scheme