hmrc: new powers, and the “amnesty” post-22 june phil berwick director, tax investigations,...
TRANSCRIPT
HMRC: New powers, and the “amnesty” post-22 June
Phil Berwick
Director, Tax Investigations, Tenon
1
HMRC Offshore Disclosure Facility
The “amnesty”
2
“Amnesty” in numbers
• 17 April 2007 - Offshore Disclosure Facility launched
• 22 June 2007 – deadline notification
• 14 June 2007 – HMRC issue 200,000 letters
• 100,000 – number of notifications expected
• 60,000 – approximate number of notifications made
3
What happens now?
• Late notifications accepted where “reasonable excuse”
• HMRC to investigate
• Minimum penalty 30%
• Prosecution threat
• HMRC action anticipated from 9 July
• Still best to approach HMRC first!
4
New powers for inspectors
• “Modernising powers, deterrents and safeguards” series
• “A new approach to compliance checks”, issued 17 May
• Subjects covered in the document include:
• Segmentation• Powers• Time limits
5
Background
• ITSA, CTSA, PAYE, NIC, VAT• Level playing-field for taxpayers• “reasonable and proportionate right to make checks”• Interventions• Current system
• Compliance regimes not aligned (cost/error/inconvenience)• Some less effective than they should be
6
Proposed new powers
• Current business records
• Entry to business premises
• Unannounced visits
• Entry to private residences
• Information powers
7
Current business records
• Current position – no right to see for IT/CT• Introduced in interventions project• “easier for all parties”• Viewed at business premises• No right of appeal• Who determines what are “adequate” records?
8
Entry to business premises
• Current position – only by invitation or search warrant• New power to “enter” and “look” at business premises• “Normally” arranged in advance• No access to “purely” private areas• Removal/marking of goods• No right of appeal
9
Unannounced visits
• Current position
• Possible safeguards considered• Visits at a reasonable time• Pre-authorisation from a senior officer• Statute• Code of Practice
• No right of appeal
10
Entry to private residences
• Current position – only by invitation or search warrant
• Total ban on entry not an option
• Will apply where mixed-use
• Inspect business assets or stock
11
Information powers
• Current position – ITSA/CTSA, S 20 TMA 1970
• First party information power• Documents and information• Right of appeal
• Third party information power• Documents• No third party authorisation• Right of appeal
12
Information powers (2)
• Some pre-authorisation of requests envisaged
• “reasonable and proportionate response” to risk
• S20 (8A) TMA 1970 power would remain
13
Summary
• Document available at www.hmrc.gov.uk/consultations/index.htm
• Comments should be sent to [email protected]
• Deadline for comments is 10 August 2007
14