U.K. Lawmakers Begin Probe Into $18 Billion of Missing VAT

House of Commons Treasury Committee announces three inquires
Value-added tax is second-largest component of unpaid taxes

The Government department of HM Revenue and Customs in London. — The Government department of HM Revenue and Customs in London.
Photographer: Oli Scarff/Getty Images

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By Jill Ward

March 26, 2018 at 11:01 PM UTC

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U.K. lawmakers are starting inquiries into tax collection, avoidance and evasion after estimating the Treasury was unable to collect 12.6 billion pounds ($18 billion) of value-added tax in the 2015-16 fiscal year.

The Treasury Committee, which scrutinizes the work of the finance ministry and the Bank of England, said Tuesday it will examine the root causes of the VAT underpayment. It will also review the steps the Treasury has taken to address criticism about businesses and individuals dodging tax.