MPs are “removed from assured” that HM Income and Customs can take care of the tax avoidance allegations made within the wake of the Paradise Paper leaks.
The general public accounts committee mentioned the division would additionally battle to take care of the strain of Brexit and its personal inside modifications.
HMRC believes Brexit alone might add 15% to its workload, the report mentioned.
The division says it has secured billions tackling tax avoidance and is targeted on making Brexit successful.
HMRC is enterprise 15 main transformation tasks, based on the MPs’ report, involving the closure of places of work across the nation, relocating employees to 13 regional centres and and making tax returns digital.
The general public accounts committee mentioned that was now “not deliverable” as initially envisaged due to strain on the division.
This might enhance additional if HMRC will get maintain of the so-called Paradise Papers – leaked monetary paperwork which revealed how the highly effective and ultra-wealthy make investments money in offshore tax havens – the committee mentioned.
The MPs’ report quoted the division itself saying it was “not credible” to proceed with its transformation programme as it’s. It mentioned HMRC needed to “be clear about what it should do otherwise… and what the influence might be on customer support”.
Committee chairwoman Meg Hillier mentioned the overhaul of HMRC “would have been much less dangerous had it not tried to do every part on the identical time”.
“What was already a precarious high-wire act is now being battered by the winds of Brexit, with probably catastrophic penalties,” she mentioned.
“Motion arising from allegations within the so-called Paradise Papers might additionally considerably enhance the authority’s workload.
“HMRC accepts one thing has to offer and it now faces tough choices on how greatest to make use of its restricted sources – choices that should give full consideration to the wants of all taxpayers.”
She mentioned whereas its customer support had improved there have been nonetheless questions over its “call-answering occasions”.
“Any new deterioration can be wholly unacceptable.”
A spokesman for HMRC mentioned they have been “absolutely centered on making the UK’s exit from the EU successful” and was on monitor to have the ability to take care of “a big enhance in customs declarations on the border” by January 2019.
“Following the Paradise Papers information leak, HMRC continues to look very carefully on the data disclosed within the public area, to see if it reveals something new that might add to current leads and investigations”.
“Since 2010, HMRC has secured an additional £160bn by tackling tax avoidance, evasion and non-compliance, together with £2.8bn from prospects who tried to cover cash overseas to keep away from paying what they owe.
“The autumn Price range additionally launched new measures to additional bear down on offshore evasion and avoidance. These embody a requirement notification of offshore constructions, and increasing the variety of years of again tax that HMRC can assess.”