In an interview with The Daily Torygraph, Dave Hartnett says that householders have a duty to ensure that other people do not evade paying their share of tax.
Paying a builder or cleaner in cash, allowing them to evade VAT or income tax, will result in even deeper government cuts to public services, he says. People who contribute to the cash economy cannot then complain about austerity measures, he adds.
"Tax provides the funding to run the country: hospitals, schools and everything else," he says. "Every time someone pays cash in order not to pay VAT, the nation gets diddled."
Speaking to a newspaper for the first time in 18 months, Mr Hartnett, the Permanent Secretary for Tax at HMRC, signals a major clampdown on the very rich.
Members of the public backed the views of Mr Hartnett today. Mr 'Arry Redcap of Totting-ham, Norf London told the spoof "Yes, abso-bloody-lutely he's 110% bang on right. All this tax evasion is bleeding the cuntry dry. It's time all these tax loopholes were closed"
A Mr Lester Pigott of Ascot told the BBC "It's ironic that all these tax evaders are actually criminal, and 'Her Majesty' could build more prisons with this money"