Upload
ethen-simeon
View
213
Download
0
Embed Size (px)
Citation preview
Neil Tipping
CCH Senior Tax Consultant
HMRC Enquiries Update
Current Issues
HMRC Information Powers
Single Compliance Process
Alternative Dispute Resolution
Business Record Checks
Legislation – Schedule 36 FA 2008
Powers To Obtain Information and Documents
Powers to Inspect Premises and Other Property
Further Powers
Restrictions on Powers
Appeals Against Information Notices
Special Cases
Penalties
Offences under the Criminal Code
Statutory Records
What are “Statutory Records”?—S.12B TMA 1970—CH11200 – General—CH11300 – Businesses—CH11400 – Company Records—VAT Notice 700 and 700/21
Power to obtain information and documents
Taxpayer Notice
Third Party Notice
Approval of Notices
Copying Third Party Notice to Taxpayer
Identity Unknown Notices
Time Limits to Comply
Producing Copies of Documents
Power to inspect premises and other property
Business premises—Assets—Documents—Premises
Power to Inspect Premises of Involved Third Parties
Power to Inspect Premises used in Connection with taxable supplies
Power to Inspect premises for valuation purposes
Tribunal Approval
Penalties
Power to inspect premises and other property
Further powers
Power to Copy Documents
Power to remove Documents
Power to Mark Assets and record information
Restrictions on powers
Documents not in person’s possession or power
Types of information—Pending appeals— Journalistic material—Personal records (i.e. personal health material)
Old Documents
Taxpayer notices following return
Deceased persons
Legal Professional Privilege
Auditors (but . . . para 26 sch 36)
Tax Advisers (but . . . para 26 sch 36)
Appeals against information notices
Statutory Records? – you can’t appeal
Third party notices
Identity unknown notices - onerous?
Procedure—In writing—Within 30 days of date notice is given—With grounds for appeal
Special cases (1)
Supply of Goods or Services—No requirement for consent to approval for 3rd party
notices—No right of appeal against such a notice
Involved third parties (defined in para 61A sch 36 FA2008)—No requirement for approval —No requirement to copy third party notice to taxpayer—Can be appealed against on any grounds apart from
where that person’s statutory records requested
Registered Pension Schemes
Groups of Undertakings
Change of Company Ownership
Partnerships
Herd Basis
Counteraction Notice Recipients
Special cases (2)
Penalties (1)
Failure to Comply or Obstruction
Daily Penalties
Inaccurate Information or Documents
Concealing/Destroying Documents—Following information notice—Following informal request
Failure to comply with Time Limit
Reasonable Excuse
Assessment Time limits
Right of Appeal
Tax Related Penalty
Penalties (2)
Offences under the criminal code
Concealing Documents following formal notice
Concealing documents following informal notification
Fine or imprisonment
Single compliance process (SCP)
What is it?
How will agents and clients be affected
How should they be dealt with by the agent community
SCP levels of enquiry
The four levels of enquiry are : Correspondence only with no need for on-site inspection
or face to face meetings
Simplified and faster route where lower intensity of face to face intervention may be required
More technically involved cases where a broader understanding of the business is required.
The most complex cases such as those involving aspects of evasion or where there are high levels of complexity
SCP stages
There will be 5 distinct stages for the SCP, most of which will be invisible to the taxpayer - these are:
Planning – Initial risk review and consideration for cross-taxes treatment
Contact – Formal enquiry notices and information requests issued
Process – review of information, dialogue with taxpayer and/or agent, on site records reviews
Resolve – The purpose of this stage is to follow settlement procedures in order to bring the correct tax into charge.
Close – finalisation of paperwork and onward referral to any specialist risk teams if necessary (i.e. National Min wage, CIS review teams etc.)
Current issues
Consultation
Use of Email
Openness and Early Dialogue
Opening Approach
Implementation
Alternative Dispute Resolution (ADR)
Background
Aims
What issues does it deal with for Agents and Clients?
Cases potentially suitable for ADR may involve any of the following features:
Facts which are capable of further clarification Disputes that may benefit from obtaining more suitable
evidence Fact and/or technical matters in which there is legitimate
scope for any party to obtain a better understanding of the other’s arguments
Issues which are capable of further mediation and settlement by agreement within the framework of the Litigation and Settlements Strategy (LSS)
Alternative Dispute Resolution (ADR)
Cases not suitable for ADR may involve any of the following features:
Cases which cannot be legitimately settled within the parameters of the LSS other than by litigation
Issues which require clarification in the wider public interest. These might include matters of industry wide application
Issues linked to or involving co-ordinated appeals issues (‘Stood behind’ cases) e.g. ‘Compound Interest’ type disputes
Cases that could only be resolved by an HMRC departure from its established technical or policy view
Alternative Dispute Resolution (ADR)
If you are involved with enquiry cases where either the case is going nowhere and/or communication between HMRC and the client has broken down, please consider recommending that the case be referred to ADR
To do so, the agent merely needs to register the case with the ADR team by telephone on 01492 523747 giving the name of the client and tax reference plus the name of the caseworker
Alternative Dispute Resolution (ADR)
Business Record Checks (BRC)
What are they?
What happens during a BRC?
Why were they suspended earlier in the year?
What problems were encountered during the trial phase?
What are they being replaced with?
Level 1 – Educational Tools
Level 2 – Targeted Assistance
Level 3 – Leverage Exercises
Level 4 – BRC checks
Level 5 – Full audit/intervention
Business Record Checks (BRC)