Tax gap

Tax and treasury - tax compliance.

The tax gap is an official estimate of the difference between the amount of tax that should, in theory, be paid to the tax authorities (the theoretical tax liability) and the amount actually paid.

In turn, the theoretical tax liability is the tax that would be paid if all taxpayers complied fully with their tax-related obligations.

"A move towards mandatory electronic invoices in the UK will aim to modernise financial processes, reduce errors and close the ‘tax gap’."

(Association of Corporate Treasurers - UK to launch e-invoicing consultation - November 2024)

See also

• Electronic invoicing
• His Majesty's Revenue & Customs (HMRC)
• Tax
• Tax avoidance
• Tax base
• Tax compliance
• Tax evasion
• Tax harmonisation
• Tax haven
• Tax incentive
• Tax planning
• Tax risk
• Tax yield
• Treasury

Other resources

• Research and analysis - The tax gap - HMRC
• Association of Corporate Treasurers - UK to launch e-invoicing consultation - November 2024