UK Firms Express Fears Over Customs-Inland Revenue Merger

by Jason Gorringe, Tax-News.com, London

12 May 2004

UK companies are unhappy with the government's plans to merge the Inland Revenue and Customs departments, recent reports in the national media have revealed.

Business taxpayers from many sectors have reportedly expressed concern that following the merger the best staff in both departments will leave in order to pre-empt the inevitable job losses which will result, established relationships with taxpayers will deteriorate, and the merged tax authority will take a more aggressive approach to collection.

Speaking to the LMG news service, Steve Walsh, group manager at transport firm, National Express, suggested that:

"I think the Inland Revenue will now embark on a more audit-based approach towards tackling business, which is what Customs & Excise are used to doing. For businesses like us we can expect a more in-your-face style from the Inland Revenue."

He went on to add that:

"I think there will probably be some benefits in ten years' time when the dust has settled and I've retired. But I think it will become such a cumbersome beast that it will be extremely hard to manage."

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