How many of us have now uploaded the NEW INTERVENTIONS document now produced by HMRC?
It is a large piece of reporting. The copy I printed off last night provided a bulky 48 Pages of what is deemed to be :" An Alternative Approach To Compliance Activity". There is a Management Summary & Evaluation Report as well. It is difficult, or perhaps unreasonable for taxpayers to get too hot under the collar over the report. My take on much of the material that I have thus far read (albeit briefly) is that the adversarial approaches by HMRC over the years under what now appears to the "old enquiry regime" may be softened, and quite deliberately. Perhaps our kind interpretation of this is that the "Men In Big Coats" at HMRC have reflected on all the hassle presented to them by accountants who act for, and represent their clients.
In Enquiry Cases, time often marches on after a Section 9A, CIF Case or any other significant compliance issues that come to light. Many believe that HMRC have been a little soft on Non-Disclosure Cases in the past. However, it is worth us all considering the wear & tear of representing clients that do stumble over serious obstacles, often leading to a confrontational business life for many months.
We are often inclined to be dismissive of new initiatives, sometimes because HMRC may seem to be trying far too hard. I guess that the one thing which should be looked at closely, is that when HMRC announce a new initiative, that the department does see it through. My recollection is that significant tax may have been lost when various past initiatives that have emanated from HMRC have simply not born fruit. The time may be right for us to reflect on the cost of Stand-Offs in cases over recent years. I cannot help thinking that this less confrontational approach to what may be termed "Intervention Cases" will be good. Perhaps we should try to absorb much of the "Alternative Approach", and walk with it carefully before we try to run. Sometimes we need to remember how draining weeks of confrontation can be. I have deliberately not commented here on the topic of "Intervention Tactics". It is most probably premature to do so. I think that there may be light (or some light) at the end of the tunnnel, and that we may derive better results in many cases IF we play fair, and allow ourselves to remember that this is about tax,not confrontation.
After I've fully absorbed all the background & Pilot stuff in the, "NEW INTERVENTIONS" summary,we may be able to see the light again with less intensity?
Replies (4)
Please login or register to join the discussion.
Sorry I disagree
The initiative is to try and get more tax per enquiry and it will fail for the simple the reason the last system failed. The Revenue staff are under resourced, internally trained and therefore have no commercial experience, and unfortunately don't really understand the law they are trying to police or where the tax is being lost. The system is intended to mirror the VAT enquiry system but there is a big difference, most agents are more comfortable on direct tax than VAT. The new penalty regime will help bridge the gap as higher penalties will be levied and only competent taxpayers/agents will have the necessary skills to appeal.
My opinion of the last system was that it was fine but the Revenue needed to up their game. Changing the procedures wont change the outcome.
Accountant vs Accountant
One accountant working on a commission only basis checking the work of another accountant. Who needs the Revenue. We could then set up a league table of tax recovered based on results. Cracking idea, not for the taxman, but the entertainment value.