Legislation is required to bring HM Revenue & Customs' (HMRCs) information powers up to the standards required by the Global Forum on Transparency and Exchange of Information for Tax Purposes.
The aim is that a new power will be added to the range of information powers in Schedule 36 FA 2008. It may be used in the situation where identifying information is held, but the identity of the taxpayer is not known. For example, HMRC may have the bank account branch and number relating to some transactions, but needs to know the name and address of the account holder in order to carry out a tax check. In those circumstances, HMRC will be able to issue a notice requiring the bank to provide the name, address and date of birth of the account holder, but no other information.
If, once identity is established, further information is required the existing powers under Schedule 36 should be used. The use of the new power will be closely controlled in line with the controls that already exist for using the power in paragraph 5 of Schedule 36.
A consultation Bringing HMRC's information powers into line with international standards for tax information exchange was published on 7 July 2011.
A summary
of responses was published on 6 December 2011 alongside the draft
legislation for inclusion in Finance Bill 2012 published for comment by
10 February 2012. Autumn
tax updates and draft Finance Bill clauses.
