The National Audit Office has confirmed that it is in the ‘early stages’ of scoping a review of HMRC’s procedures for resolving tax disputes. Private Eye has linked the NAO’s decision to recent allegations concerning HMRC’s £1.2 billion settlement with Vodafone.
The National Audit Office has confirmed that it is in the ‘early stages’ of scoping a review of HMRC’s procedures for resolving tax disputes. Private Eye has linked the NAO’s decision to recent allegations concerning HMRC’s £1.2 billion settlement with Vodafone. But an NAO spokesman has told Tax Journal that while Vodafone and other cases would have been taken into account in reaching any decision to launch a review, the NAO would not be auditing particular settlements.
The spending watchdog has ‘long been aware’ of a need to look at the control framework surrounding the settlement of HMRC investigations. It will have access to confidential papers but will not be reporting on specific cases.
‘When the NAO report comes out [later this year], top tax officials can expect a grilling from MPs on the public accounts committee,’ Sue Cameron wrote in the Financial Times.
She added: ‘I learn that HMRC has stepped up its inquiries into alleged leaks by its own officials following complaints about the private financial details of groups such as Vodafone appearing in the press. Five officials have been taken off long-standing corporate investigations and given other work.’
The House of Commons Treasury Sub-Committee announced last October that it was launching an inquiry into HMRC's administration and effectiveness. The inquiry would focus on matters including the implications of HMRC’s spending review settlement, and whether HMRC is able to deliver the government’s aims on tax compliance.
The Daily Mail has quoted Labour MP George Mudie, head of the sub-committee, as saying that the sub-committee ‘wants to question HMRC about how their inspectors reach agreements with firms over their tax bills’.
Vodafone insisted that its recent settlement was agreed 'after a full and rigorous examination of the facts and circumstances by HMRC', and HMRC said the suggestion of an outstanding tax liability of £6 billion – which prompted a series of protests at Vodafone stores – was 'an urban myth'.
An HMRC spokesman told Tax Journal: ‘As part of its standard annual review, the NAO is looking at the settlement of disputes, from the smallest to the largest, and considering our processes, both internal and external and including those involving tribunals.
‘HMRC collected £435 billion in 2009/10 at a cost to the taxpayer of less than 2 pence in the pound. We pay £22 billion in tax credits a year. This could only be achieved by a fundamentally well-organised and efficient organisation.'
He added: ‘We have responded to isolated concerns in a proportionate and strategic way. This response is evidence of nothing other than a professional commitment to customer service.’
The National Audit Office has confirmed that it is in the ‘early stages’ of scoping a review of HMRC’s procedures for resolving tax disputes. Private Eye has linked the NAO’s decision to recent allegations concerning HMRC’s £1.2 billion settlement with Vodafone.
The National Audit Office has confirmed that it is in the ‘early stages’ of scoping a review of HMRC’s procedures for resolving tax disputes. Private Eye has linked the NAO’s decision to recent allegations concerning HMRC’s £1.2 billion settlement with Vodafone. But an NAO spokesman has told Tax Journal that while Vodafone and other cases would have been taken into account in reaching any decision to launch a review, the NAO would not be auditing particular settlements.
The spending watchdog has ‘long been aware’ of a need to look at the control framework surrounding the settlement of HMRC investigations. It will have access to confidential papers but will not be reporting on specific cases.
‘When the NAO report comes out [later this year], top tax officials can expect a grilling from MPs on the public accounts committee,’ Sue Cameron wrote in the Financial Times.
She added: ‘I learn that HMRC has stepped up its inquiries into alleged leaks by its own officials following complaints about the private financial details of groups such as Vodafone appearing in the press. Five officials have been taken off long-standing corporate investigations and given other work.’
The House of Commons Treasury Sub-Committee announced last October that it was launching an inquiry into HMRC's administration and effectiveness. The inquiry would focus on matters including the implications of HMRC’s spending review settlement, and whether HMRC is able to deliver the government’s aims on tax compliance.
The Daily Mail has quoted Labour MP George Mudie, head of the sub-committee, as saying that the sub-committee ‘wants to question HMRC about how their inspectors reach agreements with firms over their tax bills’.
Vodafone insisted that its recent settlement was agreed 'after a full and rigorous examination of the facts and circumstances by HMRC', and HMRC said the suggestion of an outstanding tax liability of £6 billion – which prompted a series of protests at Vodafone stores – was 'an urban myth'.
An HMRC spokesman told Tax Journal: ‘As part of its standard annual review, the NAO is looking at the settlement of disputes, from the smallest to the largest, and considering our processes, both internal and external and including those involving tribunals.
‘HMRC collected £435 billion in 2009/10 at a cost to the taxpayer of less than 2 pence in the pound. We pay £22 billion in tax credits a year. This could only be achieved by a fundamentally well-organised and efficient organisation.'
He added: ‘We have responded to isolated concerns in a proportionate and strategic way. This response is evidence of nothing other than a professional commitment to customer service.’
