The Chartered Institute of Taxation (CIOT) responds to tax agents consultation document

The Chartered Institute of Taxation (CIOT) responds to tax agents consultation document

The Chartered Institute of Taxation (CIOT) responds to tax agents consultation document

The Chartered Institute of Taxation (CIOT) welcomes the publication of the consultative document “Working with Tax Agents” which was issued today as part of the Budget 2009 documentation.

In principle anything which enhances the standard of tax compliance must be good news for taxpayers, agents and the government. The CIOT also welcomes the fact that this is a very open discussion document which gives all parties an opportunity to shape the debate. Consultation documents have too often in the past been issued at a time when the main decisions had already been made and there was therefore very little scope for reshaping the fundamentals.

Andrew Hubbard, CIOT Deputy President, says: “The CIOT will want to consider the proposals in the consultation document at some length before giving a final view on what has been proposed. Our overriding concern at this stage is that, if there is to be some form of registration or enforcement of minimum standards, that this is done consistently across the whole of the agent population. It would be a disaster if a well intentioned move to encourage HMRC and professional bodies to impose tough performance standards on tax agents had the result of creating an alternative “cheap and cheerful” market for tax advice with little or no sanction over agent behaviour.”

The CIOT has always acknowledged that there are many high-quality advisers in the UK who have no professional qualifications and believes that this sector of the agent population would also welcome sensible attempts to enhance the overall quality of taxation advice.

Andrew Hubbard adds: “Our other key area of concern is that whatever results from this consultation process should not have the effect of driving up the costs of tax compliance. At a time when many businesses are seeking to control costs as never before, additional tax fees will be especially unwelcome.”

We look forward to taking part in this consultation and to helping to ensure that the outcome does reflect a proper balance between the, sometimes conflicting, needs of taxpayers, their agents and HMRC.

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For press information contact Simon Goldie on 020 7340 0569 (direct line), 07879 497316 (mobile). Email sgoldie@ciot.org.uk