Small Business Tax Compliance a Challenge, UK Official Says

Small businesses that don’t comply with tax laws are more difficult to track down than major corporations who don’t comply, Jim Harra, chief executive at the UK tax office, said Monday.

His Majesty’s Revenue and Customs can broadly estimate tax non-compliance, but it is difficult to track exactly how and when small businesses don’t comply, Harra said at a Public Accounts Committee hearing on tax fraud in the retail sector.

“We can estimate it. But of course, what the tax gap doesn’t do is tell us on a case-by-case where that non-compliance is, which is why we have to ...