Tax appeals reform
HMRC updates its web pages
There are two government departments working on the reform of the tax appeals system – which, as readers will know, will become part of the new unified two-tier tribunal structure from 1 April 2009. These departments are the Ministry of Justice (MoJ) and HM Revenue & Customs (HMRC).
HMRC will be responsible for the handling of tax appeals before they are passed to the independent tribunal. The MoJ has been working (for some years) on all aspects of the new unified tribunal structure, and will be responsible for administrative matters once tax appeals have been sent to the tribunal.
HMRC has a section of its website focusing on Tribunals Reform. This has recently been revised and updated. It includes some useful background information and links to other relevant sites.
The HMRC site also give details of one of the main changes to how HMRC will handle tax appeals from next April – the new internal review process. The purpose of this is for HMRC to have a fresh look at a decision which a taxpayer has disputed.
HMRC can offer a review, and the taxpayer has a right to have one – but it is not compulsory. The intention is that it will be carried out by an officer independent of the original decision-maker and will take an even-handed approach. HMRC has been carrying out trials of this new process in Manchester.
Another strand of work for HMRC is to prepare the Order which will change the tax legislation in all relevant places so that it ties in with the new tribunal structure and procedure. This includes, for example, replacing ‘General Commissioners’ ‘Special Commissioners’, etc, with the term ‘Tribunal’.
It also inserts the provisions for the internal review process. A draft of this Order was published for consultation earlier this year (the Faculty responded in TAXREP 56/08).
HMRC has set up two stakeholder groups to discuss the changes to tax appeals procedures – the ICAEW is represented on these, and minutes of recent meetings are on the HMRC website.
17 November 2008
