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HMRC defends debt recovery powers plan

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HMRC’s Lin Homer faced questions on HMRC’s proposed new direct recovery of tax debt powers at her appearing before the Treasury Select Committee on 8 July, with Liberal Democrat MP John Thurso, suggesting that the new powers would ‘breach the Magna Carta’.

HMRC’s Lin Homer faced questions on HMRC’s proposed new direct recovery of tax debt powers at her appearing before the Treasury Select Committee on 8 July, with Liberal Democrat MP John Thurso, suggesting that the new powers would ‘breach the Magna Carta’. Homer rejected suggestions that HMRC was trying to become ‘judge, jury and executioner’. The powers were aimed at ‘a small number of recalcitrant debtors’, she said, adding that the new regime was comparable with those in France, Australia and the US. HMRC expects the powers to generate an additional £375m over the next four years.

However, the committee remained concerned about the proposals. Andrew Tyrie, the committee’s chair, said: ‘Prior independent oversight is essential. Mistakes could have serious financial consequences for taxpayers, and risk undermining public confidence in HMRC.’

Whether HMRC should have such powers was the subject of this year’s  ICAEW Tax Faculty’s annual Wyman debate, held last week. After hearing the debate, a slim majority (53%) of those attending thought such powers were not needed.

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