The UK’s Labour Party, for which the analysis was conducted, claims the figures show that the Conservative government is only paying lip service to tackling the issue, while actually creating new tax loopholes.
Shadow chief secretary to the Treasury Peter Dowd said the money could have been used to reduce the budget deficit by 5%.
“Tax avoidance is a scourge on society that undermines public trust and deprives our public services of the funds they desperately need, but the Conservatives have consistently failed to tackle it.
“The Tory Government is tinkering around the edges and trumpeting new gimmicks while creating new tax loopholes that allow the wealthy and super-rich to avoid paying their fair share.
“Only a Labour Government will take the necessary steps to tackle tax avoidance and offshore trusts and create an economy that works for the many not the few.”
The House of Commons Library figures show that some £2.2bn in owed taxes went uncollected every year from 2010-11 to 2014-15 by individuals and multinationals trying to reduce their tax bill, with a peak of £3.5 bn in 2010/11.
According to HMRC, the total tax gap – the difference between what is owed and what is collected, which could as a result of crime, illegal tax evasion and avoidance or simply error – was £36bn in 2016.
However, some claim the actual figure is actually a lot higher because HMRC’s estimate ignores structuring arrangements by large multinational corporations that enable them to legally – though controversially – reduce the tax owed on their UK generated revenues and profits.
A Treasury spokesperson said: “The UK has one of the lowest tax gaps in the world and we continue to take action to ensure everyone pays the tax they owe.
“Since 2010, we have collected £160bn for our public services that would have otherwise gone unpaid.”
