Select committee: Finance Bill Sub-Committee
Conclusion 4
4th Report - New powers for HMRC: fair and proportionate?
Published 19 Dec 2020
Paragraph 24
Finance Bill Sub-Committee Draft Finance Bill 2021 All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
We accept that HMRC has faced some significant challenges in applying the existing rules, given the steps taken by promoters to frustrate their efforts. We are, however, concerned that it is only now that HMRC is proposing changes we are told are needed to ensure existing rules apply effectively. Nevertheless, we welcome the action being taken by HMRC to rethink its approach to promoters in light of its experience.
From: Finance Bill Sub-Committee, 4th Report - New powers for HMRC: fair and proportionate?, paragraph 24, 19 December 2020
Government response
The government responded to the whole report on 19 February 2021 (deadline 19 February 2021).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government states that it "has accepted nine recommendations and partially accepted six" of the Sub-Committee's report on new HMRC powers, and declines the others.
- On promoters of tax avoidance schemes, it accepts that DAC6 should no longer be a POTAS trigger, and says it "will consult this spring on a further package of measures" so that promoters face stronger sanctions more quickly.
- It does not accept the recommendations to keep tribunal approval for financial institution information requests, or to give a right of appeal, stating that the UK "will be unable to meet the international standard" if tribunal approval remains.
- On unregulated tax advisers it partially accepts the recommendation, stating that, "as a first step", it is "exploring making professional indemnity insurance a compulsory requirement" and will consult on the design of this proposal.
- On notifying uncertain tax treatment it does not accept a new Stage 1 consultation, but "will launch a further Stage 2 consultation" before publishing draft legislation for technical consultation.