The FT reported last week that HMRC are apparently going to adopt a less "combative approach" to resolving tax disputes with businesses.
It seems that there is a "logjam" of legal cases relating to the "contentious" issue of avoidance, which are very expensive in terms of both time and money.
Even Dave Hartnett, permanent secretary for tax at HMRC, has expressed concerns that maybe HMRC have been a tad "heavy handed":
"HMRC is packed full of very intelligent people, but we are sometimes too black-and-white about the law."
He went on to comment on HMRC's litigation strategy, which was introduced in 2007:
"I think we got it a bit wrong in the way we explained it to our people. They thought it was a great sword of justice."
Oh Lord!
"Sword of Justice!?"
Dear oh dear, the thought of unelected civil servants viewing themselves as some form of super heroes, on a mission to "save the world from evil", is rather alarming.
Kudos to Hartnett for recognising, and admitting to, this problem.
Tax does have to be taxing.
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Have I understood this correctly? Hartnett is saying its not the boards fault but people lower down have misunderstood the strategy and been overzealous?
ReplyDeleteThis would not be linked to the recent cases they lost would it?
ReplyDeleteIf you are going to go to court, you need to make sure you have all your facts right. Even if the business is in the wrong.
"Kudos for Hartnett"
ReplyDeleteHe's the man behind the litigation policy. Before he introduced it, inspectors merrily settled cases. Not always a good idea, but they settled them.
Hartnett wants to change policy. Fine. But he doesn't want to admit he's wrong. He has a choice, admit to being wrong, or insulting his staff. So he makes out that his best staff are impractical boffins.
And he wonders why his staff dislike him!!