Standing Up To HMRC

Andrew Thomas, the outgoing President of the Chartered Institute of Taxation (CIOT), is going to make some choice comments about tax and HMRC today.

He will make the remarks in his valedictory speech at the CIOT’s annual general meeting in Westminster at 4pm today, before he steps down to be succeeded by Patrick Stevens.

"Outgoing President of the Chartered Institute of Taxation (CIOT), Anthony Thomas, will today say:

• Cost –shifting from tax authorities to taxpayers amounts to a ‘stealth tax’
• It is important for the tax profession to continue to challenge HMRC
• HMRC must be properly resourced to safeguard the UK ‘moneybox’

Anthony Thomas will say:
On Restoring Trust
“The theme for my year as President has been "Restoring Trust"; that is trust between HMRC, the professions, notably our Institute, and taxpayers... It is absolutely essential that HMRC be perceived as fair and even-handed.” 

Anthony Thomas will say that progress has been made and the need for trust now features regularly in conversations – but that there is still a long way to go. 

On Tax Avoidance
“Deliberate obfuscation of the important distinction between avoidance and evasion undermine[s] trust.”
Anthony Thomas will reiterate the CIOT stance that HMRC needs to get a better balance between tackling avoidance and tackling evasion – which again has seen progress during the year.

On Cost Shifting
“[T]here is little point in HMRC achieving cost savings if this involves greater costs, in aggregate, for taxpayers... cost shifting... is effectively another "stealth tax". There is a distinct possibility that this will be the result of the Real Time Information system currently being piloted, particularly for smaller businesses and tax practices around the country.”

On Standing Up To HMRC
“[I]t is important to continue to challenge HMRC... Doing the right thing will include continuing to be upfront about HMRC's failings and not gloss over them in the hope of an easier relationship...

“Continue to voice concern at the highest level that only a properly funded and resourced HMRC is capable of safeguarding the UK "moneybox" in a way which allows them time to treat citizens with respect. The Revenue department must never be put at risk and the current culture of fiscal compliance can only be retained by properly trained staff which includes being properly funded.

“We must continue to be outspoken and critical when attempts by the profession to impress upon HMRC the value of slowing down the implementation of their proposals in order to give proper consideration to their impact are simply ignored or result in HMRC speeding things up.”

Well said!

Tax does have to be taxing.

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