Tax Reforms Criticised by Experts

By Michael Ross
Published on 26 Aug 2008
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Tax Reforms Criticised by Experts

The introduction of a new government charter protecting consumers from over-zealous inspectors will come too late, it has been claimed.

The new powers soon to be given to Britain's tax inspectors will not properly protect the general public, experts have suggested.

From next year, HM Revenue & Customs (HMRC) will introduce its "get tough" measures, allowing its inspectors to enter homes and offices in search of tax irregularities. A sliding scale of penalties - worth up to 100 percent of a business' final tax bill for the worst cases - will also be introduced.

However, various industry analysts have pointed out that, while the crackdown is set to be launched with the introduction of the Finance Act in April 2009, a charter aimed at safeguarding the general public from "over-zealous" tax inspectors will only enter statute around four months later at the earliest. They claim that taxpayers will be vulnerable to HMRC officials abusing their position within this overlap period, the Guardian reports.

Groups including the Association of Chartered Certified Accountants (ACCA) and the Low Income Tax Reform Group (LITRG) are therefore calling for the crackdown only to be imposed when the charter is ready.

Speaking to the newspaper, Robin Williamson at the LITRG said: "When you talk to the policy strategists at HMRC they say the regime is benign and all their staff will follow the rules, but we find ordinary taxpayers have a very different experience on the ground."

A spokesperson for HMRC pointed out that taxpayers would be protected by existing safeguards, following the introduction of the Act and prior to the launch of the charter.

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