Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, pursuant to the Answer of 12 July 2016 to Question 42176, on tax collection, for what reason technical risks not subject to litigation do not form part of the tax gap; and what proportion of unpaid corporation tax identified as technical risks not subject to litigation was collected by the Exchequer in the last two fiscal years for which figures are available.

The large business corporation tax gap relates to those cases where it was not possible to reach agreement on the amount of tax to be paid. Tax on technical risks not subject to litigation are excluded from the tax gap because for these cases agreement is expected or has been reached between HM Revenue and Customs (HMRC) and the customer in line with the Litigation and Settlement Strategy. HMRC collects the tax due under the law in accordance with the published Litigation and Settlement Strategy.