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HM Revenue and Customs has defended its recorded in the wake of a parliamentary report that has accused it of holding back on using sanctions against multinational companies, while pursuing small businesses and individuals.
Margaret Hodge, the Chair of the Public Accounts Committee, said there is a "lot of evidence" that the Government is not pursuing tax avoidance as expected.
The "tax gap" between the amount owed to the Exchequer and the amount actually collected grew by £1 billion to £35 billion in 2011/12, according to a new parliamentary report that accuses HM Revenue and Customs of being soft on big multinational firms.
HM Revenue and Customs seems to "lose its nerve" when faced with the prospect of taking legal action against global giants, while pursuing small businesses and individuals, according to a new parliamentary report.
HMRC has fallen short on the unpaid tax it hoped to extract from Swiss bank accounts - collecting just £440 million so far this financial year, rather than the £3.12 billion forecast after a bilateral agreement - said the House of Commons Public Accounts Committee.
Changes in "controlled foreign company" rules and the failure to close a loophole relating to Eurobonds have made it "easier for the companies to avoid tax while ordinary people continue to pay their share," said the committee's chairwoman Margaret Hodge.