Report on the work of the Technical Committee

By Technical Team on 24 Oct 2002

Presented to the Branches Forum, October 2002. 1. BUDGET 2003

We have submitted representations on matters that we think should be included in next year’s Finance Bill.

2. REVIEW OF THE TAXATION OF SMALL BUSINESSES
The Committee has been reviewing the pace of progress on alleviating burdens facing small businesses, relative to the level of concerns that have been raised on this topic, and considering whether there is an appropriate role that the Institute can play in encouraging further public debate in this area.

3. REFORM OF CORPORATION TAX
We have produced a response paper for submission shortly.

4. MODERNISATION OF STAMP DUTY
We are represented on the steering committee and on the various working groups dealing with this matter.

5. CLEARANCE APPLICATIONS
We are continuing to work with the Revenue to produce a set of notes on clearance applications, together with a statement of the information required for each kind of clearance.

6. OFFSHORE FUNDS
We have submitted a response paper on the condoc issued in April.

7. TAXATION OF UK BRANCHES OF FOREIGN COMPANIES
We have submitted a response paper on the draft clauses issued in July.

8. OECD PAPER ON EMPLOYEE STOCK OPTIONS
We have submitted a response paper.

9. ALIGNMENT OF PAYE AND NICs
The interim report from the Study of Personal Tax is still awaited.

10. STAKEHOLDER PENSIONS
We continue to pursue some administrative problems with stakeholder pension rules.

11. QUICK WINS: EMPLOYER/EMPLOYEE TAXATION
This paper was published in May 2002 and resulted in a meeting with the Revenue with a view to taking some of the items forward. The Revenue have, in particular, asked for examples on overseas medical expenses (see the article in August Tax Adviser on page 4 or our website entry in July at www.tax.org.uk). Feedback from members in this area would be very welcome.

12. GOVERNMENT REVIEW OF RESIDENCE/DOMICILE ISSUES
A working party has been formed in preparation for any consultation document in this area.

13. NEW TAX CREDITS
The code of practice on compliance is still awaited. We have had continuing correspondence and consultation with the Revenue on the various Tax Credits Regulations published this summer. Many of the suggestions we have made have resulted in changes to the Statutory Instruments, but there are still issues outstanding. We continue to be involved in all consultations on the practical operation of Working Tax Credit and Child Tax Credit.

14. CONTRUCTION INDUSTRY SCHEME
The results of a survey conducted via Tax Adviser and AccountingWEB have been passed on to the Revenue and we are now involved in the consultation on the review of the CIS scheme.

15. SUPPLEMENTARY PAGES ON THE SA TAX RETURN
We have written to the Revenue suggesting ways in which the need for some supplementary pages might be avoided.

16. TRIBUNALS
We submitted a response to the consultation on lead case procedures and public hearings.

17. SECTION 144A ICTA 1988
Through the consultation on taxation of expatriates we continue to press for change to this onerous legislation.

18. COMPLEX PERSONAL RETURN TEAMS
Members of the Personal Tax Sub-committee are meeting with the Revenue to find out more about how this new compliance project segment will operate.

19. SELF-ASSESSMENT
The CIOT continues to be represented on both the Operations Consultative Committee (OCC) and the CT Operations Consultative Committee (CTOCC). 

20. BETTER REGULATION
The CIOT continues to be represented on the Better Regulation Consultative Committee and the umbrella group on employer/employee issues.

21. ELECTRONIC COMMUNICATION WITH MEMBERS
We circulated all CIOT members specialising in VAT and excise duties for whom an e-mail address is held for comments on three VAT consultations currently in progress. Some useful responses were received.

22. PARTIAL EXEMPTION
We were represented at the Customs and Excise Partial Exemption Working Group meeting held on 18 July. We also had a meeting with Customs and Excise on 21 August to discuss the new partial exemption override introduced by VAT (Amendment) Regulations, SI 2002/1074.

22. JOINT VAT CONSULTATIVE COMMITTEE
We were represented at the JVCC meeting held on 24 July.

20. INTERNATIONAL
The CIOT continues to take part in the activities of the CFE.

We are currently considering an EC proposal for a single EU-wide consolidated corporate tax system.

21. OTHER MATTERS
The CIOT continues to be represented on the Tax Law Rewrite Consultative Committee. We submitted a full response to Exposure Draft 13 (Property and Foreign Income), the first draft of PAYE regulations and the minor amendments to Schedule E in anticipation of the first Income Tax Bill. We will submit a full response to the draft Bill, which covers employment and pension income, and respond to the next draft of rewritten PAYE regulations.

We continue to engage in correspondence and discussions with the Inland Revenue and Customs & Excise on technical issues.

A working group has been set up to assist the Technical Committee and sub-committees on the application of human rights law to taxation matters. It held its first meeting on 1 July.

22. COMMENTS FROM BRANCHES
Branches are strongly urged to input comments on matters under consultation. Consultations with reasonable deadlines are circulated to Branch Technical Officers to invite comments and are publicised in Tax Adviser and on the CIOT’s website at www.tax.org.uk to invite comments from members at large. All comments are welcome, and they do not necessarily have to be input through Branch submissions.

Comments are also sought on matters that give cause for concern to members, especially when dealing with anomalies in the legislation and administrative shortcomings. This is especially so given the introduction of Self Assessment. However, it must be borne in mind that the Technical Committee does not at the present time have sufficient resources to offer a tax advisory service. Any comments should be addressed to the Technical Officers at the CIOT, 12 Upper Belgrave Street, London SW1X 8BB or e-mailed to the Head of Technical Department.

Technical Department
020 7235 9381

Posted in: Technical News