CIOT: Closer scrutiny for big tax disputes is welcome
The Chartered Institute of Taxation (CIOT) has welcomed HMRC’s announcement today of new governance arrangements for significant tax settlements.
The HMRC announcement refers to the creation of a new Assurance Commissioner role, more large settlements being reviewed and an enhanced role for HMRC’s Audit and Risk Committee
CIOT President, Anthony Thomas, commented:
“This is all very welcome news.
“For the tax system to operate effectively, there must be mutual trust between taxpayers, the tax profession and HMRC. That trust has been severely dented in recent times. A major factor has been the perception that HMRC treats big business more favourably than small firms and ordinary taxpayers.
“The CIOT has long said that HMRC’s governance needs to improve. Our argument is that HMRC would benefit from the appointment of more board-level executive and non-executive members with deep operational tax experience.
“These moves will make a real difference to the transparency around settling major disputes – and increasing transparency will increase trust. Hopefully this will be followed by improvements to HMRC’s communications, which would also contribute markedly to improving understanding and hence trust.”
Notes to Editors
1. Anthony Thomas called for fundamental reform of HMRC’s governance in an article in Tax Journal, published 13 January 2012: http://www.taxjournal.com/tj/articles/working-hmrc-2012-38641
2. The new arrangements announced by the Government today include:
· The appointment of a new assurance Commissioner responsible for overseeing all large settlements and protecting the interests of taxpayers at large;
· New rules which ensure that all cases above £100 million will now be referred, with recommendations from a panel of senior tax professionals, to three tax expert Commissioners;
· A systematic review programme, overseen by the new assurance Commissioner, of the processes used in settled cases covering all HMRC’s tax settlement work.
The Chartered Institute of Taxation (CIOT) is a charity and the leading professional body in the United Kingdom concerned solely with taxation. The CIOT’s primary purpose is to promote education and study of the administration and practice of taxation. One of the key aims is to achieve a better, more efficient, tax system for all affected by it – taxpayers, advisers and the authorities.
The CIOT’s comments and recommendations on tax issues are made solely in order to achieve its primary purpose: it is politically neutral in its work. The CIOT will seek to draw on its members’ experience in private practice, government, commerce and industry and academia to argue and explain how public policy objectives (to the extent that these are clearly stated or can be discerned) can most effectively be achieved.
The CIOT’s 15,600 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’.
George Crozier
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