CIOT cautious over Charter’s enabling clause
The Chartered Institute of Taxation (CIOT) has given a cautious welcome to the next stage in the review of HMRC Powers, Deterrents and Safeguards. The budget announced that the Finance Bill 2009 will include four further sets of proposals, covering interest, penalties for late returns or late tax, payment and debt and also further compliance checks provisions.
The CIOT is pleased to note that a number of changes have been made to the proposals following extensive consultation, especially with regard to inheritance tax, which is often done without the benefit of professional advice. The postponement of the expanded P35 is also welcome as is the removal of a fixed penalty for late payment, which will now be geared to unpaid tax.
Andrew Hubbard, CIOT Deputy President, says: “We feel the consultation process has ironed out a number of issues that were concerning the Institute. We are keen to ensure that the new Implementation Forum monitors the new Powers so that it understands how they are working in practice. This will make it easier to deal with any unintended consequences promptly and to the satisfaction of the taxpayer and their tax adviser.”
As with the Powers implemented from 1 April, how the further provisions are implemented will be of concern to the CIOT. While the CIOT generally feels comfortable with the new regime, there are still questions over how the measures will be enforced by HMRC compliance staff.
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For press information contact Simon Goldie on 020 7340 0569 (direct line), 07879 497316 (mobile). Email sgoldie@ciot.org.uk
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