HMRC Is Shite

HMRC Is Shite
Dedicated to the taxpayers of Britain, and the employees of Her Majesty's Revenue and Customs (HMRC), who have to endure the monumental shambles that is HMRC.

Wednesday, 31 July 2013

Oversight of HMRC


Their Lordships on the economic affairs committee have mounted the anti avoidance bandwagon, and have said that tax avoidance by multinational companies was too easily carried out and ‘this damages the economy and undermines trust in the tax system’.

As noted before, HMRC and the "evil" companies that seek to avoid tax have to operate within the legal framework created by Parliament. However, the committee have ignored that point and instead have opted to blame HMRC in a report entitled "Tackling Corporate Tax Avoidance in a Global Economy: Is A New Approach Needed?"

Public Finance quotes from the report:
"There needs to be better parliamentary oversight of HMRC, so that the public can be confident that tax deals it agrees with multinational companies are appropriate.

The committee is concerned that HMRC may not be assertive enough in these negotiations."
The solution proposed by the committee is for the formation of a joint committee of MPs and peers which could, if necessary, take evidence in private to avoid claims by HMRC that it could not be held to account over individual deals because of the confidentiality of companies’ tax negotiations.

That's all very well, if the evidence taken could be guaranteed not to leak. However, given that the committee would be made up of politicians, there is every likelihood that it would leak.

Committee chair Lord MacGregor also wants large firms to publish a summary of their tax returns ‘so the public and media and ensure they are paying their fair share’.

Define "fair share" in the context of our massively complex tax system which very few people (HMRC and tax professionals outwith HMRC) actually understand ?

The committee also urged HMRC to end its practice of using staff seconded from leading accountancy firms to help design taxes.
"The risks are two-fold: that those on secondment will not have any incentive to design robust, hard-to-avoid taxes, and that when they return to private practice they will be better placed to advise how to exploit loopholes.

We recommend that the Treasury and HMRC should be better resourced to design and implement taxes, without undue dependence on short-term professional advisers."
In other words the committee wants HMRC to operate within a bubble, avoiding any contact with the real world!

Regarding oversight, the most effective oversight is that of creating a Cabinet post with specific responsibility for HMRC (ie one where the buck truly stops) outwith the Treasury.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

1 comment:

  1. Never mind oversight, have you seen this:

    http://www.mynewsdesk.com/uk/hm-revenue-customs-hmrc/pressreleases/hmrc-appoints-top-technology-expert-as-new-it-chief-891313

    Poacher turned...erm...

    ReplyDelete