HMRC Launches Consultation On Information Powers

by Robert Lee, Tax-News.com, London

10 July 2009

Two consultation documents on modernising HM Revenue and Customs (HMRC) powers, deterrents and safeguards were published on July 9 by the UK government.

The first paper contains proposals for modernizing and improving HMRC’s information powers, and accompanying safeguards, in two key areas, including ‘bulk information powers’ and ‘specialist unnamed taxpayer powers.’ The closing date for responses to both papers is October 1, 2009.

Bulk information powers allow HMRC to gather specific pieces of information about a group of taxpayers for use in risk analysis, for example, interest paid by banks without deducting tax.

Specialist unnamed taxpayer powers allow HMRC, in certain “tightly-described circumstances,” to ask for information from a third party about an unnamed taxpayer, for example, to check a transaction where it’s not clear who the relevant taxpayer is.

The second consultation looks at ideas for a new and modernized excise checking framework, as well as ways of improving excise administrative procedures, in order to reduce administrative burdens for business. The proposals cover excise duties on alcohol, tobacco, energy products, gambling duties and air passenger duty.

The consultations follow the introduction in April 2009 of a new compliance checking framework, which brought in a new set of rules and safeguards for HMRC inspections, visits and enquiries across a range of taxes, including income tax, capital gains tax, VAT, PAYE, the Construction Industry Scheme and corporation tax,

The 2009 Finance Bill contains measures to extend this new regime to other taxes.

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