HMRC powers worrying for taxpayers
By Tom Carnegie, 6 Dec 17
Concern has been raised about the lack of effective safeguards in place for taxpayers, as HM Revenue and Customs continues to develop broader powers to seek payments.
Risk to justice
The report points out that it is parliament’s job to make tax law and not HMRC’s, nevertheless it is HMRC that forms it’s own view on what the law means and how it applies.
“HMRC has argued for the new powers, including their limited safeguards, from a perspective of seeking to change the behaviour of some taxpayers,” the report says.
“In addition, it is argued that if the courts agree with HMRC in 80% of cases, HMRC is well placed to identify what transactions will be Institute for Fiscal Studies successfully countered.
“However, the powers are written in wide terms which go beyond the target of ‘the recalcitrant few’ and which may easily sweep up the 20% who would otherwise be successful in defeating HMRC in litigation,” it says.
Tags: HMRC
