Government unveils plans to increase HMRC powers

As part of its plans for modernisation, HM Revenue and Customs (HMRC) has unveiled new measures that will increase its powers and clarify the rights and responsibilities of taxpayers.

Last week HMRC announced that it intends to develop a Taxpayers’ Charter that will summarise rules for taxpayers in a single ‘accessible’ document.

The Revenue has also published three consultation documents, the first of which proposes granting HMRC additional powers to collect tax debts. The second document outlines a new framework for HMRC to carry out compliance checks, and the third paper sets out plans to extend the Finance Act 2007.

Commenting on the proposed reforms, financial secretary to the Treasury, Jane Kennedy, said:

‘The further powers consultations are […] another step towards a modern framework of law and practice for both HMRC powers and taxpayers safeguards, which will ultimately provide greater consistency across taxes and make HMRC more efficient and effective.

‘I look forward to businesses, the professions and their representatives continuing to work with HMRC on these proposals.’

The deadline for submitting comments on the three consultation documents is 6 March 2008.

The draft legislation can be viewed at: www.hmrc.gov.uk/consultations/index.htm