Member Article

New controls to handle tax disputes

HMRC has announced new measures for significant tax disputes, in a bid to provide greater transparency, scrutiny and accountability, following recommendations by the Public Accounts Committee.

The new arrangements include the appointment of a new assurance Commissioner responsible for overseeing all large settlements and protecting the interests of taxpayers at large.

All cases above £100m will now be referred to three tax expert Commissioners, one of whom will be the assurance Commissioner.

The department’s Audit and Risk Committee will also have an enhanced role in overseeing HMRC’s tax settlement work.

David Gauke MP, Exchequer Secretary to the Treasury, said: “I welcome HMRC’s new governance arrangements, which will ensure a clearer separation between those who attempt to reach settlements and the Commissioners who consider them.

“Settlements form an important part of HMRC’s large business strategy. This internationally recognised approach has not only led to an increase in tax collected in recent years, it is contributing to the Government’s drive to make the UK more competitive in a global market.

“This will continue to be vitally important as we work to rebuild our economy.”

Dave Jennings, Tax Investigations at Grant Thornton said: “The Public Accounts Committee has expressed considerable concern about the way in which tax settlements have been made with large corporates.

“Complex legislation means that negotiated settlements are often inevitable, but the move to appoint another commissioner so cases over £100m are approved by all three commissioners is a sensible move to ensure that proper controls are in place to protect the public purse.

This was posted in Bdaily's Members' News section by Tom Keighley .