Andrew Goodall

Alternative Dispute Resolution for SMEs ‘has to be good news’, says CIOT | Tax Journal

HMRC has launched an Alternative Dispute Resolution service for SMEs, in an effort to resolve disputes ‘much earlier’ than at present and reduce compliance costs.

via www.taxjournal.com

Potential impact of HMRC cuts on tax revenues is not fully understood, MPs warn | Tax Journal

HMRC needs to be clearer about how its cost-saving measures are likely to affect taxpayer compliance, a committee of MPs has warned.

via www.taxjournal.com

Large companies should pay 'a fair tax rate', says Cameron

Consultation on the introduction of a general anti-avoidance rule appears likely to feature in the Budget on 21 March, after David Cameron backed Nick Clegg’s call for tougher action to ensure that large companies pay their ‘fair share’ of tax.

Speaking to small business owners and entrepreneurs in Maidenhead yesterday, the Prime Minister said: ‘For the large companies that have the fancy corporate lawyers, I think we need a tougher approach. One of the things we’re going to be looking at this year is whether there should be a more general anti-avoidance power that HMRC can use, particularly on very wealthy individuals and on the bigger companies, to make sure they pay their fair share.’

The May 2010 coalition agreement committed the government to ‘make every effort to tackle tax avoidance, including detailed development of Liberal Democrat proposals’.

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Tax disputes: MPs defend HMRC whistleblower

MPs have backed Osita Mba, the HMRC whistleblower who has contended that the Goldman Sachs settlement may have cost as much as £20m and argued that HMRC routinely issues press releases disclosing ‘sensitive personal details of individuals convicted of (and sometimes charged with) tax and benefit offences’.

A specific gateway was required to issue such releases lawfully, Mba said in evidence submitted to the Public Accounts Committee (PAC), and HMRC applied Commissioners for Revenue and Customs Act 2005 s 18(2)(a), which permits a disclosure made for the purpose of a function of HMRC so long as the disclosure does not contravene any restriction imposed by the Commissioners.

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Tax disputes: NAO to scrutinise five settlements as HMRC faces legal challenge

Sir Andrew Park, a retired judge who has been involved in many leading tax cases – including Arctic Systems and several well-known corporation tax appeals – will provide tax expertise to assist the National Audit Office in a detailed review of five of HMRC’s largest tax settlements.

The Commons Public Accounts Committee (PAC) warned on 20 December that ‘systemic issues’ surrounding HMRC’s handling of tax disputes must be addressed with ‘the utmost urgency’. A proper separation between negotiation of tax settlements and their authorisation was needed, and HMRC ‘must address issues of accountability so that Parliament and the public can be satisfied that the best value is secured’, the committee said.

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HMRC accused of ‘double standards’ over business records checks pilot

HMRC has begun a detailed review of its business records checks programme, having recognised that the project would have benefited from more detailed consultation.

The Independent reported in a front-page article today that HMRC faced accusations of "double standards" over plans to target thousands of small businesses with spot checks, despite "letting big companies such as Goldman Sachs off millions of pounds in tax".

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Tax Journal news: December 2011

Playing catch up ... these are the news stories that I posted on the Tax Journal website between 1 and 15 December 2011, latest first:

Press watch: City firms ‘face tax investigation’

‘Up to ten companies are facing a judge-led investigation into their tax settlements amid growing concern over the way Revenue…
15 Dec 2011 

Autumn statement is ‘good for SMEs’ | Tax Journal

Tax professionals welcomed new measures announced in this week’s autumn statement to encourage investment in smaller businesses but pointed out that the government has chosen not to reverse a planned reduction in capital allowances. One expert said the decision to freeze the capital gains tax annual exemption set a worrying precedent.

via www.taxjournal.com

Pensions tax relief measure to take effect from 29 November | Tax Journal

The government will deliver permanent reductions in spending, using the savings to fund infrastructure investment and support social mobility, HM Treasury announced in today’s autumn statement.

via www.taxjournal.com

Brussels is ‘threatening to sue’ over UK-Swiss tax deal | Tax Journal

European Commission lawyers have concluded that the UK’s controversial tax agreement with Switzerland is in breach of EU law, the Financial Times has reported, and Brussels is ‘threatening to sue’ the UK unless the deal is significantly altered.

via www.taxjournal.com

Eurodad steps up campaign for country-by-country reporting | Tax Journal

Multinational ‘tax dodges’ are estimated to account for over half of all illicit capital flight from developing countries, the European Network on Debt and Development (Eurodad), a network of NGOs from 19 European countries, has claimed.

via www.taxjournal.com

‘Tackle tax havens’ campaign highlights the cost of evasion

Tax evasion costs more than the entire health budget in each of 67 countries, according to new research published by the Tax Justice Network. Launching its ‘tackle tax havens’ campaign to highlight the role that secretive states play in ‘corrupting the global economy’, the TJN has ranked 145 countries according to revenues lost to tax evasion.

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NAO seeks tax expertise as HMRC faces legal challenge on Goldman deal

Lawyers acting for a group seeking to challenge a settlement reached between HMRC and Goldman Sachs have told the department that its ‘ongoing delay’ in dealing with the claim is ‘unacceptable’.

Meanwhile, the National Audit Office is continuing to looking for tax and legal expertise to assist its further investigation into HMRC settlements with large businesses, a spokesman told Tax Journal after a newspaper report indicated that a senior judge would lead the inquiry.

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Anti-abuse rule will safeguard ‘the centre ground’ of responsible tax planning, says Aaronson

There will be no need for a system of tax clearances to accompany a targeted anti-abuse rule because ‘the centre ground of responsible tax planning’ will be unaffected, Graham Aaronson QC said in his report on the merits of a general anti-avoidance rule.

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High Pay Commission links tax avoidance protests to anger over executive pay

Growing public anger over executive pay increases the likelihood of reputational harm to businesses and ‘can lead to public protests like those carried out by UK Uncut against the Top Shop boss Sir Philip Green’s alleged tax avoidance’, according to the High Pay Commission.

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