The money gleaned from reluctant taxpayers, both personal and corporate, has risen from £1.13bn in 1991-92 to a staggering £9.17bn in 2006-07. The money has come from a wide range of sources: from individuals and companies who had simply failed to fill in their forms, to investigations of outright tax dodgers. The £400m in extra tax that will be coming from people who have been hiding money in offshore bank accounts does not feature in the figures yet. But in 2006-07 the Revenue gleaned an extra £834m from tighter scrutiny of corporate tax returns and more than £1bn from probing self-assessed tax returns. This money was obtained by staff in the Revenue's routine network offices.
Even more spectacular has the been the haul of cash gained by staff in the various specialist offices, who work on bigger examples of deliberate fraud. Their work gained the Revenue an extra £3bn in corporation tax from employers, as well as £2.6bn dug up by the sort of specialist teams that have now been put to work on the offshore bank accounts.
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The published HMRC performance report shows that the average cost of collection is just over 1p for every pound of tax recovered, which represents a very good "return" on the money spent. Sadly, that is far from the end of the story. The published statistics also suggest that the scale of tax evasion is continuing apparently unabated and on a massive scale.
Prosecutions
Despite the widespread evidence of serious fraud, the rate at which the Revenue has initiated prosecutions for false business accounts and tax returns has halved over the last 15 years. In 1991-92 there were 134 convictions, falling to a low of 55 in 1995-96. This has marginally increased to 70 convictions in 2006-07 and demonstrates a clear reluctance on the part of the authorities to take tax evaders to court.