Big Business To Benefit From Single UK Tax Department, Says New Chief

by Amanda Banks, Tax-News.com, London

12 July 2004

David Varney, the new head of the UK’s merged tax department has told the Financial Times that large businesses will be among the first to benefit from dealing with one tax collection agency.

Varney, the 'captain of industry' selected to lead the new super department, revealed to the FT that the offices of the Inland Revenue and Customs that deal with larger firms may be the first to undergo integration.

"We are looking early to see what scope there is for putting the two large business organisations together," explained the outgoing chairman of mobile telecoms firm MMO2.

While this integration could be completed relatively quickly, the new head of 'HM Customs and Revenue' warned that the full merger of the two departments could take up his whole three year term. However, he feels the upheaval will be ultimately worth the cost for the government, pointing to international evidence that single tax departments are more adept at closing the ‘tax gap’ of uncollected tax revenues.

Mr Varney’s stewardship is also unlikely to bring about a more relaxed approach to tax avoidance. Telling the FT that he fully endorses the government’s crackdown on tax planning schemes, Varney remarked: “Do I think UK plc is going to go down the toilet if those people are pursued? No, I do not."

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