As part of its Tax administration and maintenance day announcements, the government has committed to develop a roadmap for future consultation on tax administration. Hidden away at the end of the document setting out the results of the wide-ranging consultation The tax administration framework: Supporting a 21st century tax system, Section 4 ‘next steps’ notes that the government intends to take account of responses received in considering ‘how best to develop, prioritise and sequence proposals for changes to the [tax administration] framework’.
HMRC intends to work with stakeholders to develop the roadmap for future consultation, to ensure it ‘balances careful, incremental reform with ongoing support for the Government’s 10-year vision for the tax system’.
Welcoming the proposal to develop a roadmap for reform, Victoria Todd, head of the Low Incomes Tax Reform Group (LITRG) said: ‘A key part of reforming the tax system is to know where HMRC are trying to get to and then carefully planning the route there from where we are now. In July 2021, we urged HMRC to create a clear roadmap for reform setting out longer term goals as well as the incremental changes needed towards those goals as part of their ten-year plan. We are pleased to see this call answered with a commitment to produce a roadmap for future consultation and analysis, working with stakeholders.
‘Deciding what is within scope of the reforms is a key step towards this more detailed planning. Today we see some indications of what we might and might not see happening: for example, the Government has confirmed it has no plans currently to move the tax year end from 5 April.’
In its response to Chapter 7 of the tax administration framework consultation, which covered HMRC powers and taxpayer safeguards, the government also notes respondents’ views that tax administration reform ‘should aim to give taxpayers greater certainty more quickly, provide opportunities to challenge HMRC’s decisions more easily, and make the sanctions regime simpler’. The government intends to ‘explore opportunities to deliver balanced, sustainable improvements to the framework, carefully assessing the impacts of any reforms’ to balance fairness with HMRC effectiveness – essentially looking for ways to shore up compliance while maintaining appropriate safeguards.
In its Review of tax administration for large businesses, HMRC is to continue working with the Guidance Strategy Forum (which brings together many of the professional bodies, tax academics and commercial organisations) to improve its guidance and is to receive additional resources from government to develop new practical ‘Guidelines for compliance’. Those guidelines are expected to provide ‘practical guidance and greater transparency on the approaches HMRC regards as higher or lower risk and the associated response’ to help give businesses a clear understanding of the tax treatment of their activities. The large business review document also notes that ‘products should start to be delivered by mid to late 2022’ and recognises that this work will ‘support and align’ with the notification of uncertain tax treatment proposals.
As part of its Tax administration and maintenance day announcements, the government has committed to develop a roadmap for future consultation on tax administration. Hidden away at the end of the document setting out the results of the wide-ranging consultation The tax administration framework: Supporting a 21st century tax system, Section 4 ‘next steps’ notes that the government intends to take account of responses received in considering ‘how best to develop, prioritise and sequence proposals for changes to the [tax administration] framework’.
HMRC intends to work with stakeholders to develop the roadmap for future consultation, to ensure it ‘balances careful, incremental reform with ongoing support for the Government’s 10-year vision for the tax system’.
Welcoming the proposal to develop a roadmap for reform, Victoria Todd, head of the Low Incomes Tax Reform Group (LITRG) said: ‘A key part of reforming the tax system is to know where HMRC are trying to get to and then carefully planning the route there from where we are now. In July 2021, we urged HMRC to create a clear roadmap for reform setting out longer term goals as well as the incremental changes needed towards those goals as part of their ten-year plan. We are pleased to see this call answered with a commitment to produce a roadmap for future consultation and analysis, working with stakeholders.
‘Deciding what is within scope of the reforms is a key step towards this more detailed planning. Today we see some indications of what we might and might not see happening: for example, the Government has confirmed it has no plans currently to move the tax year end from 5 April.’
In its response to Chapter 7 of the tax administration framework consultation, which covered HMRC powers and taxpayer safeguards, the government also notes respondents’ views that tax administration reform ‘should aim to give taxpayers greater certainty more quickly, provide opportunities to challenge HMRC’s decisions more easily, and make the sanctions regime simpler’. The government intends to ‘explore opportunities to deliver balanced, sustainable improvements to the framework, carefully assessing the impacts of any reforms’ to balance fairness with HMRC effectiveness – essentially looking for ways to shore up compliance while maintaining appropriate safeguards.
In its Review of tax administration for large businesses, HMRC is to continue working with the Guidance Strategy Forum (which brings together many of the professional bodies, tax academics and commercial organisations) to improve its guidance and is to receive additional resources from government to develop new practical ‘Guidelines for compliance’. Those guidelines are expected to provide ‘practical guidance and greater transparency on the approaches HMRC regards as higher or lower risk and the associated response’ to help give businesses a clear understanding of the tax treatment of their activities. The large business review document also notes that ‘products should start to be delivered by mid to late 2022’ and recognises that this work will ‘support and align’ with the notification of uncertain tax treatment proposals.
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