Reeves said this plan will give HMRC the resources it needs to “go after those who are avoiding or evading tax, and to modernise the tax office so we have a system that is fit for purpose”.
Waqar Shah, Kingsley Napley partner and head of the tax disputes practice, said: “Most would agree any move to address the gap on tax owed versus tax collected must be a good thing.
“The number of civil investigations HMRC undertakes has indeed fallen in recent years and although HMRC has developed other effective techniques such as 'nudge' letters to tackle unpaid tax, there is undoubtedly more that can be done to address the issue."
However, while Shah acknowledged some of Reeves’s proposals would bring more into the tax net, he added: “The question remains what funding HMRC needs to enforce this and how they can speed up investigations to improve efficiency.:
In response to Labour’s announcement, chief secretary to the Treasury, Laura Trott, said: “After a month of searching for a plan to pay for Labour’s unfunded spending, the shadow chancellor still cannot say how she will fill the enormous black hole in their promises.
“That means one thing – more taxes."
Trott said the Conservatives have introduced more than 200 measures to clamp down on tax non-compliance and said the party are sticking to the plan to strengthen the economy so it can cut taxes and put £900 in the pockets of the average worker.
tom.dunstan@ft.com
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