The Association of Taxation Technicians (ATT) is of the view that HMRC has not made a strong enough case to either remove safeguards on his third-party data requests or to extend hefty daily penalties to many more cases.
Currently, before HMRC can issue a notice to a third-party for material it deems ‘reasonably required’ for its enquiries, it must get taxpayer or tribunal permission.
However, in a HMRC consultation on its civil information powers, the department says it is concerned at the length of time it can take to obtain approval from a tribunal.
HMRC believes that a radical solution would be to remove altogether the requirement for either tribunal or taxpayer-approval before a third-party notice is issued.
ATT is quoted by Contractor UK:
“We do not believe that HMRC have provided sufficient evidence to justify the erosion of important safeguards for both taxpayers and third parties.Not content with removing safeguards, HMRC also wants to extend tribunal-determined penalties -- of up to £1,000 a day – to every type of information notice that taxpayers and third parties can be issued with.
The safeguards were] introduced for two reasons -- to protect the privacy of taxpayers and to prevent undue burdens being imposed on third parties.”
Who in theri right mid would trust HMRC with these additional powers/fines?
Tax does have to be taxing.
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