Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent estimate he has made of the impact of profit shifting by multinational enterprises on the tax gap.

HMRC does not make a separate estimate of the amount of made of the impact of profit shifting by multinational enterprises on the tax gap.

Some forms of base erosion and profit shifting (BEPS) are included in the Corporation Tax gap where they represent tax loss that HMRC can address under UK law. The tax gap does not include BEPS arrangements that cannot be addressed under UK law.

The Corporation Tax gap is estimated to be 9.0 per cent of the overall Corporation Tax total theoretical liability in the tax year 2020-21, which equates to £5.6 billion.