NEW HMRC APPROACH TO TAX APPEALS
Posted: Jan 8 in tax, tips, by kevin kinsella
Tax appeals are going to be modernised.
The Tribunal Courts and Enforcement Act 2007 will provide the legal framework for a new two-tiered system.
HMRC is also considering a new review procedure called:
“TAX APPEALS AGAINST DECISIONS MADE BY HMRC”
The aim is to have an impartial review procedure in place to protect taxpayers rights across the tax system which will not create further administrative problems and is also cost effective.
The review procedure may enable cases to be settled without going to tax tribunals. One wonders how different it is going to be from negotiating with the inspector directly.
In April 2009 the new two-tiered system is going to replace the General and Special Commissioners which is now the usual form of appeals.
The first tier will hear, amongst other things, tax appeals. It will be organised into chambers as in a court, one presumes, and the tax chambers will be manned by people with appropriate expertise and training very unlike the lay members at present used as General Commissioners.
The Upper Tier will hear appeals against decisions of the first and in some cases will hear the initial appeal. I presume that these will be the more complicated appeals that are usually heard today by the Special Commissioners.
Going back to the impartial review procedure it is to be conducted by someone who was not involved in the original decision namely the inspector and his line manager.
My own view is that this is going to be more complicated than the Special and General Commissioners procedures and will introduce that evil of all evils the legal beagles especially if legal assistance is allowed for representation and that really does clog up the system.
Lets see how it works, roll on April 2009.
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