Judicial experts, HMRC directors and an investigative journalist providing evidence to Sub-Committee on HMRC powers
On 26th October at 4pm, the Sub-Committee is holding it’s sixth public evidence session on their inquiry into the 2021 Draft Finance Bill. The Sub-Committee goes into depth with the witnesses on a variety of HMRC’s present and proposed powers including tax checks on license renewals, dealing with promoters of tax avoidance, the legal procedure of issuing Financial Information Notices (FOIs) and more.
Meeting details
At 4:00pm: Oral evidence
Inquiry
Draft Finance Bill 2021
Upper Tribunal Judge at First-tier Tribunal (Tax Chamber)
Executive Director at TaxWatch
Member at Institute for Fiscal Studies (IFS) Tax Law Review Committee
At 5:00pm: Oral evidence
Inquiry
Draft Finance Bill 2021
Director for Tax Administration at HMRC
Director for Counter-Avoidance at HMRC
Deputy Director for Promoters and Upstream Policy at HMRC
Deputy Director for International Collaboration and Transparency at HMRC
Assistant Director for Hidden Economy Policy and Strategy at HMRC
Possible questions
- Concerns have been expressed about the proposal to remove the need for Tribunal approval before HMRC can issue a third party information notice to a financial institution. Can you outline what such an application by HMRC involves at present, including in relation to timings and complexity?
- You said in written evidence that you carried out a ‘secret shopper’ exercise and were offered participation in a disguised remuneration scheme. Can you tell us how easy it was to find such a scheme and, how it was described to you in terms of tax planning?
- In its 2017 review of HMRC’s powers, the IFS expressed concern that these went beyond their stated objectives. The consultation on the new proposals dealing with promoters and enablers emphasises that they are not directed at ‘good’ tax advisers. How confident are you that the legislation meets this objective?
- We understand that the TLRC are engaged in HMRC’s current powers evaluation forum. In this context, have HMRC learnt anything from previous inquiries into their powers, including from the TLRC and the Finance Bill Sub-Committee?
- Our witnesses were unsure as to why taxi and private hire vehicle drivers and operators, and scrap metal dealers, have been singled out for the proposed tax checks. Why were these sectors chosen in particular, and what evidence supported it?
- Given the wide range of powers HMRC already has, and its knowledge of, why has it not been more successful in reducing the number of promoters selling tax avoidance schemes?
- The proposals have been justified as a way of meeting international standards, but your figures suggest less than a fifth of applications involve requests from overseas tax jurisdictions. Is it not disproportionate to remove safeguards for all cases?
- Can you briefly explain the rationale for uncertain tax treatment proposals and, taking account HMRC’s relationship with large business generally, why you consider it necessary?