The Tax Administration Framework Review: enquiry and assessment powers, penalties, safeguards
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Detail of outcome
The government has published a summary of responses to the call for evidence The Tax Administration Framework Review: enquiry and assessment powers, penalties, safeguards. The government is grateful to those who contributed their views, evidence, and time to respond.
The call for evidence was open from 15 February 2024 to 9 May 2024. HMRC received 42 written responses from professional and representative bodies, tax agents, charities, businesses and legal firms; and held five engagement sessions, attended by around 50 different stakeholders.
Reform in these areas has the potential to simplify and modernise the tax administration framework, provide greater certainty and consistency, strengthen drivers to comply and, ultimately, help to support and increase trust in the tax system.
This summary of responses contains a summary of the feedback received and sets out the government’s response. HMRC will use these responses to inform any future reforms across these policy areas. At this stage, the government intends to consult further on three specific areas:
- potential reforms designed to make it quicker and easier for taxpayers to correct mistakes early compared to a lengthy investigation
- opportunities to reform HMRC’s use of behavioural penalties to make these simpler and more effective
- ways to improve taxpayer access to alternative dispute resolution and statutory review to help resolve more disputes before they reach tribunal
Original call for evidence
Call for evidence description
The tax administration framework is the broad system of instructions, guidelines and obligations underpinning the tax system. This call for evidence invites views on how certain aspects of tax administration could be reformed as part of the government commitment to establish a trusted and modern tax administration system.
The consultation focuses on HMRC’s enquiry and assessment powers, penalties, and safeguards. These underpin HMRC’s ability to respond robustly to non-compliance, while also promoting compliance and ensuring taxpayer rights are protected.
The government believes reform in these areas has the potential to simplify and modernise aspects of the tax administration framework, providing greater certainty and consistency, bolstering drivers to comply and, ultimately, helping to support and increase trust in the tax system.
Responses to the call for evidence will help shape proposals to make our tax system simpler, easier for customers and agents to engage with, and improve HMRC’s ability to tackle non-compliance robustly.
The government welcomes engagement from any individual, business or organisation with views on how these powers, penalties and safeguards can be made more efficient, effective, and simpler to understand in supporting the health of the tax system.
The consultation is open from 15 February to 9 May 2024.
The address for responses is: tafrcompliance@hmrc.gov.uk
Documents
Updates to this page
Published 15 February 2024Last updated 30 October 2024 + show all updates
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Updated to include the summary of consultation responses.
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First published.