Revenue think they are above the law
Anne Fairpo, the president of the Chartered Institute of Taxation (CIOT), has warned HMRC about overstepping its authority with its demand for more power in being able to purge a person’s bank account to collect unpaid tax.
Under the ‘Direct Recovery of Debts’ proposals HMRC would be given licence to help themselves to an individual’s bank account where there was outstanding tax arrears, provided a minimum of £5,000 is left in all accounts and that it does not cause undue hardship by removing funds from accounts that are required to meet immediate and essential day-to-day business and living expenses.
In July, the Institute of Chartered Accountants in England and Wales (ICAEW) described the proposed new powers that are estimated to affect 17,000 taxpayers each year, as “unconstitutional” and now the president of the CIOT has waded in. During the CIOT’s presidential reception, Fairpo said:
“ I am concerned about the increasing focus on HMRC enforcement without third party supervision. There is, and can be, no dispute that HMRC needs to enforce tax debts……….”
“ In a perfect world, perhaps HMRC wouldn’t need the courts but then again, in a perfect world no-one would need the courts.”
Rather than arm HMRC with these new powers, Fairpo would like to see the court system reformed if it is proving to be ineffective and therefore not allow HMRC to simply ignore it.
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