UK Tax Authority Pursuing Full Estimate of Offshore Tax Gap

The UK’s tax authority is exploring collaborating with academics to publish updated estimates of the tax gap related to undisclosed foreign income.

Offshore tax evasion is “inherently difficult” for His Majesty’s Revenue and Customs to fully measure as “new technology and economic changes” challenge it to detect offshore income, according to a letter sent to the Public Accounts Committee published Thursday.

The letter, dated Feb. 19, comes after the committee asked HMRC to provide latest estimates of the offshore tax gap, or the difference in expected offshore tax revenues and how much the office actually collects.

HMRC’s current estimate ...