The
CBI wants HMRC to improve the Business Risk Review Model, and note that many large businesses have identified a deterioration in the service
they experience with HMRC.
As per
HMRC:
"The Business Risk Review (BRR) is a core feature of how HMRC manages the tax compliance of the largest businesses. Customer Relationship Managers currently conduct a periodic BRR
of each large business, assessing their risk profile and placing them
into a binary ‘low risk’/‘non-low risk’ category. This assessment is a
key determinant of the level of scrutiny and resource the business
receives from HMRC. The process, while still effective, has undergone limited change since its introduction 10 years ago."
Over the last ten years this model has been used to assess where a
large business sits on the compliance spectrum, and accordingly, how
HMRC have deployed resources to man-mark large business. Since 2006, the
environment has changed.
HMRC noted a decreasing trend in the use of avoidance schemes but an
increase in disputes about the interpretation or application of tax law.
To help strengthen the ‘co-operative compliance’ relationship with large
business, HMRC thought this was a good time to start a conversation
about the Business Risk Review Model.
To shift compliance behaviour,
HMRC are interested to know what might influence businesses to adopt a
low risk strategy, such as a quicker clearance procedure, or real-time
decisions on transactions.
Separately, the CBI has been liaising with HMRC’s senior leadership
team, culminating in a meeting between CBI Director general, Carolyn
Fairbairn, and HMRC’s Permanent Secretaries Edward Troup and Jon
Thompson.
Many large businesses have identified a deterioration in the service
they experience with HMRC, citing delays or an unwillingness to provide
businesses with the certainty they need to get on and do business. The
CBI is keen to see a reset in the ‘co-operative compliance’
relationship, to reduce business uncertainty.
The consultation is open until 6 December and can be found
here.
Tax does have to be taxing.
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