The lost money is said to have been owed by small business, yet because of errors in calculating tax credits, it went unnoticed by the Treasury until it appeared in the Whole of Government Accounts (WGA) for 2009 to 2010, according to the Public Affairs Committee.
Margaret Hodge, chairwoman of the Commons public accounts committee, said: “The Treasury has departed from accounting standards by leaving out of the accounts of such bodies as Network Rail and the publicly-owned banks.
“This has led to the accounts being qualified by the Comptroller & Auditor General. We want the Government to provide the necessary information so that these accounts are comprehensive and credible.”
The Treasury has since admitted that they’re surprised about the write-off, which along with £105 billion of uncollected tax was called a “‘gobsmackingly, huge, ginormous figure”. But they did say the WGA represented "the most ambitious public sector account prepared anywhere in the world" and that it was working hard to remove the qualifications.
A spokesperson for the Treasury said: "No other country has sought to fully consolidate all public sector bodies, including the local government sector, in one statement of accounts.
“We will build on this first publication and are working hard to remove any qualifications.
"HMRC collects almost all tax debt and write-offs are relatively low. What's more, around 90% of those write-offs are due to insolvency where further debt pursuit is actually barred by law."
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