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The new non-executive chair of HMRC. By Simon Sweetman

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24th Jun 2008
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HMRC logoSimon Sweetman wonders what what a new chairman will do in practical terms.

Mike Clasper has just been appointed as HMRC’s new non-exec chairman. his role, we are told, will be to strengthen HMRC's corporate governance and to provide oversight to the Executive Committee and Departmental Board. He will take up the post on 1 August, and will be involved in the selection of HMRC's first chief executive.

The first point of course is that he comes straight from Terra Firma Private Equity so he knows something about tax, even if just how not to pay it. The salary of around £150,000 a year will presumably involve considerable belt-tightening, especially when he has to pay income tax on it.

Mike Clasper is one of your modern wandering executives (though to be fair he was 21 years with Procter and Gamble). He was made a CBE for his services to the environment during his time at P&G when he pioneered an industry-wide scheme to tackle packaging waste.

In January Terra Firma had put him on the board of EMI and he was in charge of restructuring that company – all done and dusted then, time for something new?

He was previously the chief executive of BAA and helped sell it to Ferrovial: he is a non-executive director of ITV, and indeed two years ago he was mooted as a potential candidate for chief executive of the broadcaster. He is also on the management committee of The Prince of Wales's Business & the Environment Programme and a founder member of the Corporate Leaders Group on Climate Change.

He enjoys tennis, skiing, golf, theatre and football (and according to some reports, rugby) and supports Sunderland. He should get on well with Roy Keane, given his background.

So what does he really have to do?

  • He has to oversee the appointment of a new CEO for HMRC. Rumour has it this too may be an external appointment, which could bring the number of HMRC board members with experience of direct tax to none
  • He has to lead a programme of improvements to services, starting pretty close to the bottom (though things are starting to look up)
  • He has to build confidence in HMRC with taxpayers in general, with the accountancy profession, and restore the morale of his own beleaguered staff.

And what has he not to do?

Meddle with the structure again, that’s what. The last externally appointed chairman threw all the pieces up in the air then left before they came down again.

And of course I ask – as I do – what does he know about small business? And is he going to learn?

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By AnonymousUser
01st Jul 2008 17:13

Its a question of confidence
A wide range of skills are required for most jobs but if you do not have the technical knowledge of the end product or services that is on offer how can you make strategic decisions at a senior level without knowing how that this effects all the links lower down in the supply chain and the effects on stakeholders.

It is a big mistake to assume that the higher the position someone has the greater their range of skills. MPs, senior executives and civil servants and those who associate with them are presumed to have extensive skill sets. The reality is quite different. History is littered with examples of their failings. Yet notwithstanding this reality the government will continue to make mistakes by making such appointments.

If the new chairman of the HMRC cannot understand the complexities of (say) tax structured finance where the amounts at stake may run into billions of pounds , Lloyds Names, non residents and investigations (incidentally all areas in which I have had extensive experience) I have no confidence in the HMRC to operate a tax system in a responsible and reasonable way. The aggression shown towards taxpayers in recent years and the incompetent management will continue for the indefinite future.

Should a Conservative Government be elected I am doubtful that there would any improvement in the efficiency of the HMRC.


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By User deleted
01st Jul 2008 07:47

Interesting comment,
but, does the fact that you might know a lot about tax mean that you are capable of heading up a department the size of HMRC? I reckon that requires an entirely different set of skills.

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By AnonymousUser
01st Jul 2008 02:40

The road to disaster.
What on earth is the reasoning behind the appointment of a non tax person as Chairman of the HMRC. No firm of accountants would appoint a tax partner, manager or senior without some experience of tax.

No wonder that the UK is in a mess, mismanged by a leaderless and negligent government. Once again the UK has become the sick man of Europe and the laughing stock of the world. Such irresponsible decisions are just one example of how the ruling classes live in world so unreal from the rest of us who are faced to suffer the consequences of their downright crass decisions

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