Case for tax administration reform ‘overwhelming’, says CIOT

Responding to HMRC’ consultation The Tax Administration Framework Review: New ways to tackle non-compliance the CIOT suggests that HMRC’s focus on specific issues that are causing problems now is potentially missing the bigger picture. The existing tax compliance framework was designed in a different era where fewer taxpayers engaged directly with HMRC making it ‘not fit for purpose for the 21st century’. The response sets out detailed comments on the various points but the CIOT summarises its view at para 2.4 of the document as follows:

‘The case for fundamental reform is in our view overwhelming and comes potentially with enormous benefits. In addition we do not believe it would be as difficult to do as perhaps envisaged. If fundamental reform of the compliance framework does not materialise due to a perception that it would be too resource intensive costly...