The committee has called for “bold and ambitious leadership” to improve its customer services, and better tackle tax system abuse and unpaid debts.
In 2023-24, HMRC wrote off £5bn in debts as uncollectable, up from £3.2bn in 2022-23.
The report called for the authority to get a better understanding of the offshore tax gap – the difference how much tax should be paid, and what was actually paid.
It also raised concerns over decreasing rates of criminal investigation and prosecution for tax-related offences.
The recommendations come after a series of criticisms levelled at HMRC.
In March last year, it announced its phone line would be closed between April and September, but was forced to reverse its decision within 24 hours.
And in May a report found that customers were waiting an average of nearly 23 minutes to get through to an adviser.
Mr Harra, first permanent secretary and chief executive at HMRC, said: “We will always be there to answer the phone for those who need extra help. At the same time, more than 80 per cent of customers are satisfied with our digital services, with more and more people using them to quickly and easily manage their tax affairs.”
