HMRC should follow the Treasury Committee’s advice and establish a ‘general disclosure facility’, according to the Chartered Institute of Taxation.
HMRC should follow the Treasury Committee’s advice and establish a ‘general disclosure facility’, according to the Chartered Institute of Taxation.
The tax body said it had been calling for such a facility since 2007 and was ‘delighted’ when the committee said earlier this month that HMRC should consider establishing a ‘general disclosure facility’ to run alongside targeted campaigns. Crowe Clark Whitehill said last week that a recent survey indicated that ‘more than three-quarters of accountants would support a blanket tax amnesty or general disclosure facility’.
In its report, Closing the Tax Gap: HMRC's record at ensuring tax compliance, the Treasury Committee said witnesses had suggested that events, rather than the existence of a campaign, prompted people back into the tax system: ‘If there was a clearly signposted and easy-to-use disclosure facility on HMRC's website, this might encourage people to regularise their tax affairs. HMRC should consider establishing a general disclosure facility to run alongside its targeted campaigns. The details of the facility should be easy for all taxpayers to access and understand.’
The CIOT noted that HMRC’s new ‘e-Markets Disclosure Facility’ was the third ‘HMRC campaign’ to be run in 2012. ‘These are in addition to previous campaigns targeting plumbers, medics, offshore bank account holders and businesses not registered for VAT, which have been completed. Campaigns targeting the home maintenance sector, direct sellers and those with “missing” self-assessment returns are promised in the near future,’ it said.
‘In addition to these campaigns, HMRC have a number of task forces that target specific business sectors in specific locations where there is evidence of tax evasion.’
‘Conveyor belt’
There was now a danger that a ‘conveyor belt’ of disclosure facilities aimed at different groups would make others who wish to get their tax arrears in order ‘wonder whether they should wait for their opportunity’, said Gary Ashford, who represents the CIOT on HMRC’s Compliance Reform Forum.
‘HMRC should focus their efforts on a big national campaign open to all taxpayers whose tax affairs are not up to date; a one-off disclosure that lasts sufficiently long and is sufficiently attractive to get people to come forward to clean the slate.’
Phil Berwick, Director at McGrigors, claimed that HMRC was ‘scraping the bottom of the barrel with these amnesties’. A general amnesty, open to everyone, would raise a more substantial amount of revenue and would much fairer, he said. ‘Why should plumbers or e-marketplace traders be given the opportunity to wipe the slate clean but no-one else?’
PKF Partner John Cassidy said: ‘I do wonder if we will start to see diminishing returns as tax evaders know that there may well be another amnesty along next month. It is high time for HMRC to draw a line and offer one final general amnesty for everyone who needs to bring their tax affairs up to date.’
Tax agents are obliged to file reports under anti-money laundering regulations in respect of certain tax offences. Detailed guidance is published by the professional bodies.
HMRC should follow the Treasury Committee’s advice and establish a ‘general disclosure facility’, according to the Chartered Institute of Taxation.
HMRC should follow the Treasury Committee’s advice and establish a ‘general disclosure facility’, according to the Chartered Institute of Taxation.
The tax body said it had been calling for such a facility since 2007 and was ‘delighted’ when the committee said earlier this month that HMRC should consider establishing a ‘general disclosure facility’ to run alongside targeted campaigns. Crowe Clark Whitehill said last week that a recent survey indicated that ‘more than three-quarters of accountants would support a blanket tax amnesty or general disclosure facility’.
In its report, Closing the Tax Gap: HMRC's record at ensuring tax compliance, the Treasury Committee said witnesses had suggested that events, rather than the existence of a campaign, prompted people back into the tax system: ‘If there was a clearly signposted and easy-to-use disclosure facility on HMRC's website, this might encourage people to regularise their tax affairs. HMRC should consider establishing a general disclosure facility to run alongside its targeted campaigns. The details of the facility should be easy for all taxpayers to access and understand.’
The CIOT noted that HMRC’s new ‘e-Markets Disclosure Facility’ was the third ‘HMRC campaign’ to be run in 2012. ‘These are in addition to previous campaigns targeting plumbers, medics, offshore bank account holders and businesses not registered for VAT, which have been completed. Campaigns targeting the home maintenance sector, direct sellers and those with “missing” self-assessment returns are promised in the near future,’ it said.
‘In addition to these campaigns, HMRC have a number of task forces that target specific business sectors in specific locations where there is evidence of tax evasion.’
‘Conveyor belt’
There was now a danger that a ‘conveyor belt’ of disclosure facilities aimed at different groups would make others who wish to get their tax arrears in order ‘wonder whether they should wait for their opportunity’, said Gary Ashford, who represents the CIOT on HMRC’s Compliance Reform Forum.
‘HMRC should focus their efforts on a big national campaign open to all taxpayers whose tax affairs are not up to date; a one-off disclosure that lasts sufficiently long and is sufficiently attractive to get people to come forward to clean the slate.’
Phil Berwick, Director at McGrigors, claimed that HMRC was ‘scraping the bottom of the barrel with these amnesties’. A general amnesty, open to everyone, would raise a more substantial amount of revenue and would much fairer, he said. ‘Why should plumbers or e-marketplace traders be given the opportunity to wipe the slate clean but no-one else?’
PKF Partner John Cassidy said: ‘I do wonder if we will start to see diminishing returns as tax evaders know that there may well be another amnesty along next month. It is high time for HMRC to draw a line and offer one final general amnesty for everyone who needs to bring their tax affairs up to date.’
Tax agents are obliged to file reports under anti-money laundering regulations in respect of certain tax offences. Detailed guidance is published by the professional bodies.
