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HMRC have published their long awaited agent strategy paper: 'Establishing the future relationship between the tax agent community and HM Revenue and Customs'.

The paper can be downloaded by clicking here.

The CIOT has issued a press statement in response: Qualified welcome for HMRC’s tax agent strategy proposals

The Institute's Low Incomes Tax Reform Group has also issued a press statement: HMRC’s agent strategy – don’t forget the unrepresented

And our sister body, the Association of Taxation Technicians, have too: Independent oversight crucial for tax agent registration system

There is also some media coverage of the launch:
HMRC to root out tax agent fraud (Daily Telegraph)
Government proposes tax agent registration (Accountancy Age)
A little trust goes a long way (Accountancy Age comment)

The CIOT and ATT are inviting the views of members, including via a survey which will be going live later this afternoon. The link will be posted here and sent to members in an email. Feel free to post your views as a comment to this blog post.

George Crozier
CIOT External Relations Manager
31 May 2011

The CIOT went transatlantic on 12 May with the inaugural meeting of the North America Branch (or Chapter). A networking reception, generously sponsored by Thomson Reuters, and held at their impressive offices at 3 Times Square (off 44th and Broadway) was well attended by representatives from the US financial and business communities as well as CTAs working in New York City and surrounds.

With the event space being situated on the 30th floor, guests had a superior view of the New Year's Eve Ball while we enjoyed drinks and canapés and listened to speeches by Vincent Oratore, Brian Peccarelli, President of the Tax & Accounting business at Thomson Reuters and Robert Moncrieff, North America Branch Chairman-Elect and partner at Ernst & Young in New York.

The next event for the Branch will be a technical meeting in September. All meetings will be open to anyone with a professional interest in tax and if you would like to receive news and alerts, don't forget to sign up in your site profile.

My own knowledge of international tax was greatly advanced by my visit (I learnt that NYC sales tax is 8.875%!) and we wish the 36th Branch of the CIOT every success.

Helen Burgess, Membership Manager

Giving the 2011 CTA address yesterday, Sir Paul Kennedy proposed stronger safeguards on the use of HMRC powers and a number of measures to improve trust between HMRC and taxpayers.

Sir Paul, a retired high court judge who is currently the Government’s Interception of Communications Commissioner (which means he reviews warrants granted to public bodies under the Regulation of Investigatory Powers Act), spoke on the topic of ‘Powers...Between Citizen and State’ at the invitation of the new CIOT President Anthony Thomas.

He focused on the balance of powers between citizen and state in three areas in particular – tax, personal liberty and surveillance.

Sir Paul accepted that some intrusion into the privacy of the individual was “a necessary evil”, but argued that, when the state takes power to invade privacy the power must be linked to the purpose in hand and proportionate.

He noted that, before a local authority can use powers, they need the authority of a magistrate. This contrasted to the lack of prior authority and oversight in schedule 36 of the Finance Act 2008, which enables HMRC to enter business premises, including for random checks.

Some Revenue powers are too wide and not sufficiently controlled, said Sir Paul. The Revenue should be given only the powers that it needs and use of those powers should be closely monitored.

In a wide-ranging speech Sir Paul drew on cases from a range of different areas to make his case, from Formula 1 boss Max Mosley’s privacy case to HMRC’s action against Christopher Lunn and Company.

He concluded with a series of recommendations. Firstly, on HMRC powers, he proposed revocation of random inspection powers, that inspections without notice should require approval from a 1st tier tribunal, and that, even where prior approval is granted, taxpayers should have a right to appeal before a 1st tier tribunal different from the one which gave the approval.

Secondly, he set out a number of measures to respond to the loss of trust in HMRC which he argued was widespread: simpler, less voluminous tax legislation; greater accessibility (including a halt to the closure of HMRC phone services and offices); extending legal professional privilege to cover advice given by all qualified tax agents; training HMRC officers not just in the law but also in how to deal with advisers and the public in a helpful way.

The speech complemented incoming CIOT President Anthony Thomas’s remarks at the Institute’s AGM earlier in the day where he also highlighted the damaged relationship and loss of trust between the public and their tax advisers on the one hand, and HMRC on the other.

George Crozier
CIOT External Relations Manager
Wednesday 18th May 2011