New CIOT President focuses on engagement with Europe
In his inaugural speech as CIOT President, Stephen Coleclough, who until the end of 2012 was President of the pan-European body for tax professionals (the Confédération Fiscale Européenne (CFE)), will also encourage UK tax advisers to take advantage of the entitlements and opportunities that UK membership of the European Union brings.
In the speech to be delivered to CIOT members at the Institute’s annual general meeting in London this afternoon, Mr Coleclough will also speak of the opportunity that HMRC’s Tax Agent Strategy presents “to bring the collection of taxes into the 21st century”. However he will warn that safeguards are needed to protect taxpayers and their advisers and ensure a “fair and balanced regime”.
Extracts from Stephen Coleclough’s presidential inaugural speech
On Europe
“Now, as President, as I’m sure you know, I get to choose a theme for my year. The theme I have chosen is Europe, and how European institutions affect our work as tax advisers… Like it or not, and the CIOT is of course apolitical, our relationship with the EU is a fact of life and decisions taken at EU-level matter to our firms, our clients and to us as tax advisers.
“Whilst there is always more we could do, I am pleased to be able to say that the CIOT has been in the vanguard of engaging with the EU on tax issues – raising issues with the Commission such as the incompatibility of the CFC regime, the loss regime, CGT apportionment under section 13 and the transfer of assets abroad legislation. These have all led to either litigation against the UK or law changes – or both. The CIOT has also pushed consistently for Ministers, the Treasury and HMRC to accept that change is required and to be proactive in making sure that our tax law is as compliant as it can be.
“Why? Because it promotes certainty for the Revenue and taxpayers. Because it avoids the time and cost of litigation. Because it shows that, whatever debates and issues we have with the EU – for example whether we think a consolidated corporate tax base is a good idea or not – we can be good Europeans. And, quite simply, because without that compliance there are taxes people – our clients – are paying that are being taken from them unlawfully, and that cannot be acceptable.
“My objectives for the year ahead are two-fold. First, to increase awareness among tax professionals of the ways in which our EU membership affects our work, for good or bad, and the entitlements and opportunities it brings. For example, did you know that under the 2005 EU Directive on the Recognition of Professional Qualifications, CIOT members are entitled to request that their CTA is treated as equivalent to the tax qualifications of other EU countries that they may work in?
“Second, and probably the bigger challenge, I want to press for a more serious, grown-up approach from Government to complying with EU tax law. Too often the UK Government acts too late or does too little, and fails in its responsibilities. Take the Finance Bill currently going through Parliament. It contains five provisions specifically intended to ensure that UK law complies with EU law. In the view of the experts on the Institute’s EU & Human Rights Sub-committee at least four of them will not achieve this objective.
“This is crazy. This slapdash approach to complying with rules that we help set, and which help ensure that the single market can operate fairly, is failing UK taxpayers. It needs to change.”
On HMRC’s Tax Agent Strategy
“There is a tremendous opportunity for taxpayers, tax advisers and HMRC here: to bring the collection of taxes into the 21st century. In today’s world it should not be beyond us to imagine a future where the tax adviser can update his client’s files in HMRC’s systems, for whichever tax he is advising upon and remove the endless to-ing and fro-ing which goes on today. A system where HMRC’s systems are so accessible and straightforward that many taxpayers can fulfil their obligations directly…
“But perhaps my biggest concern is whether the old ways of HMRC have gone away and whether tax advisers and their clients will find that self serve becomes a way to cajole the tax adviser, used by those at HMRC who believe all of our clients are “at it” and we are co-conspirators. I know from what people have said or I have heard them say that there are some in HMRC who use phrases, and I am not taking these out of context, such as “we control the tax professions” and “failure to follow HMRC’s tool kits shows a lack of reasonable care”.
“This mentality needs to be gone forever. Which is why, when Edward Troup asked me what I thought his biggest challenge would be in his then new role at HMRC, I said: changing the culture of the people in HMRC…
“I am not convinced that HMRC yet really understand their obligations to keep taxpayers’ information confidential, or that taxpayers have a right to a private life, which means that whilst they are obliged to disclose information required for their tax obligations, they are entitled to refuse to answer questions which go far beyond this. And whilst HMRC are very clear that they have no desire to regulate the profession, the power to deny access to self serve is one which could effectively close a tax adviser’s business down, so there must be an independent process around this. However, in turn, as tax advisers, we must accept some element of policing of self serve, as we cannot expect HMRC to allow just anyone access to their systems.
“The job of the CIOT, and of myself as President, is to help HMRC as much as we can to achieve a fair and balanced regime which deals with all of the many issues coming out of what really is a brave new world.”
END
Notes for editors
1. The full text of Stephen Coleclough’s remarks is available on request.
2. Stephen Coleclough
Stephen Coleclough LLB CTA(Fellow) FIIT TEP FRSA FInstCPD is qualified as a solicitor and is a partner in indirect taxes at PricewaterhouseCoopers which he joined in 1997. Prior to that he was head of corporate and indirect taxes at Simmons & Simmons. He was Chairman of the CIOT’s Technical Committee from May 2005 to May 2008.
From 2008 to 2012 he was President of the Confédération Fiscale Européenne, the body of European tax advisers, which embraces 33 national organisations from 24 European States, representing more than 180,000 tax advisers.
3. The new CIOT Deputy President, replacing Stephen Coleclough, is Anne Fairpo. Anne is a barrister at 13 Old Square Chambers and Atlas Chambers, focussing on taxation of intellectual property, international tax issues and employment tax advice. She is also Chair of the Institute's Education Committee.
The new CIOT Vice-President, replacing Anne Fairpo, is Chris Jones. Chris is Director of Tax Markets & Learning Solutions for LexisNexis UK & Ireland.
4. The Chartered Institute of Taxation (CIOT)
The CIOT is the leading professional body in the United Kingdom concerned solely with taxation. The CIOT is an educational charity, promoting education and study of the administration and practice of taxation. One of our key aims is to work for a better, more efficient, tax system for all affected by it – taxpayers, their advisers and the authorities. The CIOT’s work covers all aspects of taxation, including direct and indirect taxes and duties. Through our Low Incomes Tax Reform Group (LITRG), the CIOT has a particular focus on improving the tax system, including tax credits and benefits, for the unrepresented taxpayer.
The CIOT draws on our members’ experience in private practice, commerce and industry, government and academia to improve tax administration and propose and explain how tax policy objectives can most effectively be achieved. We also link to, and draw on, similar leading professional tax bodies in other countries. The CIOT’s comments and recommendations on tax issues are made in line with our charitable objectives: we are politically neutral in our work.
The CIOT’s 16,500 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’, to represent the leading tax qualification.
Contact: George Crozier on 020 7340 0569 or 07740 477374 (gcrozier@ciot.org.uk) / James Knell on 020 7340 2702 (jknell@ciot.org.uk)
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