HMRC amends agent dishonesty clauses
New HMRC proposals to clamp down on dishonest tax agents are a big improvement on previous draft legislation that alarmed and angered tax advisers, the Chartered Institute of Taxation has said. However, the institute questioned whether new legislation is needed to deal to deal with a “handful” of dishonest tax advisers. Nick Huber reports.
In a consultation paper published last week - Working with Tax Agents: Dishonest Conduct - HMRC said it had gone “back to basics” and made extensive changes to proposals for identifying dishonest tax agents and penalising them.
Key proposals in the consultation document include issuing “dishonest conduct” notices, access to working papers with Tribunal approval, a civil penalty and allowing HMRC to publish details of dishonest tax agents who are penalised but have not made full disclosure.
HMRC’s draft legislation on tax agents, published in early 2010, was widely criticised by tax professionals for being vague and heavy handed.
In response to criticism of its draft legislation HMRC proposed more than 20 “safeguards” for agents in the revised legislation. Concessions include giving agents greater right to appeal against HMRC when officials are planning an investigation into an agent or investigating suspected wrongdoing; a narrower definition of tax advice covered by the legislation; HMRC staff will need approval from a tribunal before accessing agents’ working papers.
Also, HMRC has changed the test definition of dodgy conduct by a tax agent from “deliberate wrongdoing” to “dishonest conduct”.
CIOT technical director Tina Riches broadly welcomed the revised legislation. “This one is far better, with much better safeguards for agents,” she said. “For example, HMRC needs proof of dishonest before it can proceed.”
HMRC’s new approach to tackling dishonest tax agents will require it to replace sections 99 and 20A of the Taxes Management Act (TMA) 1970 and extend the new legislation to all taxes and duties. The consultation on the draft legislation will close on 16 September. HMRC said that it will consult further in the autumn before introducing the draft legislation into the 2012 Finance Bill. The legislation would come into effect from 1 April 2013.
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DISHONEST TAX INSPECTORS
And what about DISHONEST TAX INSPECTORS ?
The recent revelations that tax inspectors deliberately overtax businesses to earn themselves a bonus/pay rise is outragious and until a full independant investigation has been carried out I don't thing HMRC are in any position to judge others.
Whenever
HMRC start quoting figures and numbers my hair stands on end. They know there are about 40 at any given time yet don't know if that increases or decreases Uh!!!!!!!!!!
There are enough safe guards to weedle out dishonest agents. If there weren't how would HMRC know there are about 40 at any given time!!!!!!
If we are going into self-serve with "agent view" why more legislation??????
Are we going through all this nonsense..............
for about 40 dishonest agents???????????? There are bad apples in every profession. HMRC should use their current powers to weedle them out and then get on the all the things that taxhound has raised.
Also HMRC should up corporate CIS refunds and allow CT offset of these. As no refund will be processed until September, all affected companies will need to provide and pay their CT liabilites about then. Oh and get the IT systems updated so that we can file CT600 for periods falling after April 2011 NOW, not in October!
Concentrate on what they should be doing
Until HMRC can:
1. Issue tax assessments on a timely basis (ie less than 1 year after the year to which they relate);
2. Send out self assessment statements IN TIME for the second payment on account at 31 July;
3. Update their corporation tax system to cope with corporation tax returns for the period after 31/3/11 BEFORE the AUTUMN!!
4. Send out penalties promptly to prevent further penalties accruing;
5. Answer the phone at corporation tax offices and the Collector's office;
6. Get PAYE codes right first time;
7. Stop sending out assessments to clients within SA, as if they were not within SA and then sending them big refunds that are not due
Just to mention a couple of items
I really think they should stop worrying abount whether agents are doing a "good job" or not and get their own house in order.
Right, that feels a bit better, thanks!