HMRC are consulting on potential changes to its enquiry and assessment powers, and related penalties and safeguards. The consultation considers the following ‘reform opportunities’ in relation to HMRC’s enquiry and assessment powers:
adoption of a consistent, single set of powers across all taxes – or at least identification of circumstances or taxes where a common approach could be applied;
addressing inconsistencies in powers across taxes – for example, where powers for one regime are not replicated in other similar regimes (HMRC give several examples in the documentation);
adjustments to time limits to make sure tax consequences from non-compliance can be ‘corrected across all affected periods and tax regimes’;
conditions for assessment: considering HMRC’s powers to raise assessments for different taxes, and the different conditions that apply (including knowledge available to the hypothetical HMRC officer) – the documentation mentions the idea of adopting a ‘simpler, strict time limit approach’;
new ways for HMRC to deal with claims for tax reliefs; and
increased use of digital communications, with the necessary changes both to HMRC’s systems and the legislation that underpins the particular notice or other document.
On penalties, HMRC are looking at expanding harmonisation – noting that ‘some penalty regimes may have become overly complex, making them hard to understand and costly to administer’ – perhaps having in mind FA 2007 Sch 24, for example, where historically it has not always been clear which bits of para 1 have actually been brought into force.
The final section on safeguards includes discussion of aligning various procedural aspects of appeals across direct and indirect taxes and widening access to ADR and statutory review.
HMRC are consulting on potential changes to its enquiry and assessment powers, and related penalties and safeguards. The consultation considers the following ‘reform opportunities’ in relation to HMRC’s enquiry and assessment powers:
adoption of a consistent, single set of powers across all taxes – or at least identification of circumstances or taxes where a common approach could be applied;
addressing inconsistencies in powers across taxes – for example, where powers for one regime are not replicated in other similar regimes (HMRC give several examples in the documentation);
adjustments to time limits to make sure tax consequences from non-compliance can be ‘corrected across all affected periods and tax regimes’;
conditions for assessment: considering HMRC’s powers to raise assessments for different taxes, and the different conditions that apply (including knowledge available to the hypothetical HMRC officer) – the documentation mentions the idea of adopting a ‘simpler, strict time limit approach’;
new ways for HMRC to deal with claims for tax reliefs; and
increased use of digital communications, with the necessary changes both to HMRC’s systems and the legislation that underpins the particular notice or other document.
On penalties, HMRC are looking at expanding harmonisation – noting that ‘some penalty regimes may have become overly complex, making them hard to understand and costly to administer’ – perhaps having in mind FA 2007 Sch 24, for example, where historically it has not always been clear which bits of para 1 have actually been brought into force.
The final section on safeguards includes discussion of aligning various procedural aspects of appeals across direct and indirect taxes and widening access to ADR and statutory review.
