The professional bodies, including the CIOT, have raised various concerns in relation to the proposed new criminal offence of failing to comply with a stop notice – principally that a stop notice is issued at the discretion of HMRC without external or judicial oversight which effectively means that, under the proposals, HMRC would determine whether or not a criminal offence had been committed.
The CIOT had also expressed its concerns direct to HMRC. In reply, HMRC has given the following assurances:
HMRC will publish a summary of the ‘robust governance processes’ it applies before issuing a stop notice.
Promoters can appeal a stop notice before the tribunal. HMRC says that this ‘provides a route for external scrutiny of HMRC’s decision, albeit after the Stop Notice has been issued’. The judiciary therefore have the final say on whether a criminal offence has been committed (assuming promoters exercise their right to appeal – HMRC has not commented on whether that is the expectation in all cases).
In terms of the appeal process itself, and criticism that promoters could find themselves having been charged with an offence, HMRC notes that the tribunal already has the power to cancel a stop notice with effect ‘from such date as the tribunal considers appropriate (which may be earlier or later than the date on which the tribunal makes that direction)’. HMRC points out that, should a tribunal direct that a stop notice cease to have effect from the date on which it was issued, it would effectively cease to have effect completely – anyone who had been charged would simply not be guilty of the offence.
The professional bodies, including the CIOT, have raised various concerns in relation to the proposed new criminal offence of failing to comply with a stop notice – principally that a stop notice is issued at the discretion of HMRC without external or judicial oversight which effectively means that, under the proposals, HMRC would determine whether or not a criminal offence had been committed.
The CIOT had also expressed its concerns direct to HMRC. In reply, HMRC has given the following assurances:
HMRC will publish a summary of the ‘robust governance processes’ it applies before issuing a stop notice.
Promoters can appeal a stop notice before the tribunal. HMRC says that this ‘provides a route for external scrutiny of HMRC’s decision, albeit after the Stop Notice has been issued’. The judiciary therefore have the final say on whether a criminal offence has been committed (assuming promoters exercise their right to appeal – HMRC has not commented on whether that is the expectation in all cases).
In terms of the appeal process itself, and criticism that promoters could find themselves having been charged with an offence, HMRC notes that the tribunal already has the power to cancel a stop notice with effect ‘from such date as the tribunal considers appropriate (which may be earlier or later than the date on which the tribunal makes that direction)’. HMRC points out that, should a tribunal direct that a stop notice cease to have effect from the date on which it was issued, it would effectively cease to have effect completely – anyone who had been charged would simply not be guilty of the offence.
