Section 660A settlements legislation
Following a further meeting with the DTI, we have agreed to participate in two seminars designed to identify problems for small businesses and to consider possible solutions.
We have attended meetings with the Revenue on how they intend to proceed following the case of R v Gill & Gill.
Consultation on consultation
We are preparing a response to the Cabinet Office consultation on consultation procedures. We attended a workshop organised by the Cabinet Office as part of the consultation process.
B. CORPORATE AND INTERNATIONAL MATTERS
Corporation tax reform
We have produced a paper in response to the consultation document issued in August. Application of International Accounting Standards for tax purposes
We have produced letters to the Revenue dealing with group arbitrage problems and with the treatment of debt and derivatives.
Controlled Foreign Companies
Our paper calling for a review of the CFC legislation will be discussed at a forthcoming meeting with Revenue Policy International.
Making the UK tax system EU-compliant
We are continuing to participate in discussions with the Revenue on transfer pricing and thin capitalisation as part of the corporation tax reform consultation.
We have produced a paper in response to the consultation document issued in July.
We are currently considering proposed changes to the Parent and Subsidiaries Directive and the Mutual assistance Directive.
CTOCC (Corporation Tax Operations Consultative Committee)
We continue to be represented on this committee.
Feedback on any of the above should be sent to Colin Davis, Technical Officer for Corporate and International Tax matters, at the Institute, or by e-mail to colin-g-davis [at] btconnect.com.
Colin Davis, Technical Officer for Corporate and International matters
C. PERSONAL TAXES
Income Tax Self-assessment (ITSA)
We continue to be involved in meetings with the Revenue looking at various aspects of ITSA. We would particularly welcome feedback from members on the new Short Tax Return piloted this year.
New Tax Credits
The survey has gone out and we hope that as many members as possible will respond. Relevant results are to be presented to an Inland Revenue Tax Credits Conference on 4 December 2003. The overall results will be published in Tax Adviser and on the website in due course. One of the areas for further consideration will be the extent to which members and the Institute should be involved in Pension Credit (not a tax credit).We have written to the Revenue on the new Tax Credit amending regulations with a view to publishing some guidance, particularly in the area of loss reliefs.
Tax Law Rewrite
We continue to be represented on the Consultative Committee of this project. Current papers under consideration are Receipts from intellectual property, Settlements, Bill 4 scoping issues, and a Regulatory Impact Assessment on Bill 3,
Joint IR/DWP working group on National Insurance Deficiency Notices
We are now represented on this group that is looking at, and monitoring the issue of, these notices.
We continue to be represented on the consultation meetings reviewing the Construction Industry Scheme (CIS).
S660A and Tax Bulletin 64
A joint working group of all the professional bodies continues to look at this issue. A response to the Revenue‚ s statements on 4 November has been submitted and published on the CIOT‚ s website.
BRCC (Better Regulation Consultative Committee), OCC (Operations Consultative Committee) and Umbrella Group on Employment Issues
We continue to be represented on the OCC, the BRCC and the Umbrella Group on Employment Issues and, where relevant, their various sub-groups.
Feedback on any of the above should be sent to Liz Lathwood, Technical Officer for Personal Taxes matters, at the Institute, or by e-mail to lathwood8 [at] aol.com.
Liz Lathwood, Technical Officer for Personal Taxes
D. INDIRECT TAXES
We were represented at a Customs and Excise seminar held in June to discuss the anti-fraud measures announced in the Budget. We worked closely with the ICAEW in preparing for this meeting. We also responded to the Customs and Excise consultations on draft statements of practice regarding joint and several liability and deduction of input tax without a valid VAT invoice.
Face value vouchers
We are preparing a paper for submission to Customs and Excise regarding practical problems arising from changes introduced in the Finance Act 2003.
We have responded to the Customs and Excise consultation ‚ Making Input Tax Recovery Fairer‚ .
JVCC (Joint VAT Consultative Committee)
We continue to be actively involved with the JVCC and were represented at the meeting held in July. The October meeting was cancelled.
Land and Property Liaison Group
We continue to be actively involved with the Group‚ s activities and were represented at the meeting held in September.
Place of supply of services
We have responded to the European Commission consultation on the place of supply of services.
We have prepared a paper on practical difficulties arising from recent case law in respect of share issues to third country beneficial owners using a UK nominee. This will be submitted to Customs and Excise shortly.
Simplified import VAT accounting
We continue to be actively involved with the Customs and Excise working group considering the new arrangements (previously known as the delayed accounting for VAT at import scheme) to be introduced in December.
The Sixth Directive
We have responded to the European Commission‚ s consultation on the draft text of a directive consolidating the Sixth Directive (77/388/EEC).
Feedback on any of the above should be sent to Charles Barcroft, Technical Officer for Indirect Taxes matters, at the Institute, or by e-mail to charlesbarcroft [at] aol.com.
Charles Barcroft, Technical Officer for Indirect Taxes
E. CAPITAL TAXES
CGT Review Group
Members of the Capital Taxes Sub-Committee are continuing to represent the Institute in this ongoing consultation with the Inland Revenue.
The next meeting of the Capital Taxes Sub-Committee is on 27 January 2004. Please send any suggestions for agenda items to the Secretary.
Feedback on any of the above should be sent to to the Secretary, Capital Taxes Sub-Committee, at the Institute, or by e-mail tomt [at] taxbar.com.
Michael Thomas, Secretary, Capital Taxes Sub-Committee
F. WORKING TOGETHER WITH THE INLAND REVENUE
Keith Lang has been appointed as David Ellis‚ s replacement and Marjorie Williams has taken over from Stephen Banyard. It‚ s early days, but both look like people that we can do business with.
Tax Credits Sub-Group
Liz Lathwood has continued to represent CIOT at Working Together meetings on the development of the tax credits system.
The Steering Group last met on 29 September 2003 ‚ minutes will be circulated shortly.
The IR Enquiry Toolkit CD is now available, and the Revenue are keen to organise joint workshops. Feedback from the workshops already held has been excellent.
The sub-group met with Graham Black on 19 November to discuss the handling of Revenue enquiries.
Liz Lathwood has led on the continued discussions about the FAQs.
Taxpayers moving in and out of SA
The Revenue have accepted that it is poor customer service to take people out of SA, or put people in, without explaining what is going on. In future the Area Office will be obliged to write to the taxpayer.
Working Together Thames Valley
The Revenue are looking for agents in Berkshire Area to take part in the local WT meetings.
We continue to forward operational issues to the WT team on almost a daily basis, eg FBI problems, global tax payments by partnerships, flat management companies, missing calculations.
Feedback on any of the above should be sent to the Technical Department at the Institute or by e-mail to Richard Mannion atrichard_mannion [at] solomonhare.co.uk or Nigel Eastaway at eastawayn [at] wjbchiltern.com.
Richard Mannion and Nigel Eastaway, CIOT representatives on Working Together
G. WORKING TOGETHER WITH HM CUSTOMS AND EXCISE
Regional champions have been appointed for each of the local areas where Customs have a Working Together contact. Most areas have had at least one meeting. Customs are particularly looking for agents in Wales to take part in the WT with Customs meetings there.
Anyone interested in being involved should contact Bianca Marsden at the Institute or by e-mail at bmarsden [at] ciot.org.uk.
Bianca Marsden, Head of Technical Department, CIOT
H. TAX POLICY SUB-COMMITTEE
New Tax Credits
Liz Lathwood is doing a research project on this for the CIOT; survey questionnaires have been circulated by e-mail and via Tax Adviser.
Reasonable Business Expense
The CIOT is commissioning a short piece of research.
This area is being looked at as a possible topic for a research paper.
Input still being sought for some more quick wins to submit to the Revenue and Customs.
Feedback on any of the above should be sent to John Whiting at the Institute, or by e-mail to john.whiting [at] uk.pwc.com.
John Whiting, Chairman ‚ Tax Policy Sub-Committee
21 November 2003
-- This information is brought to you by the Technical Department. Tel: 020 7235 9381.